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™.
