With only one above-normal1 day in November, 401(k) plan investors were light traders throughout the month, according to the Alight 401(k) IndexTM. Following two months where stable value funds topped net inflows, November saw large U.S. equity funds receiving the most inflows. Net outflows came primarily from company stock and target date funds2.
November observations:
- On average, 0.01% of 401(k) balances were traded daily.
- 12 of 21 days favored fixed income funds.
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The Alight Solutions 401(k) IndexTM statistics for the month of November: |
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|
Index statistics |
November |
2022 YTD |
|
Total transfers as percentage of starting balance |
0.09% |
1.19% |
|
# Fixed days |
12 (57%) |
165 (72%) |
|
# Equity days |
9 (43%) |
65 (28%) |
|
# Above-normal days |
1 |
41 |
Inflows and outflows during the month of November:
- Trading inflows mainly went to large U.S. equity, bond and money market funds.
- Outflows were primarily from company stock, target date2 and international equity funds.
|
Asset classes with most trading inflows in November |
Percentage of inflows |
Index dollar value($mil) |
|
Large U.S. equity funds |
48% |
$94 |
|
Bond funds |
35% |
$69 |
|
Money market funds |
16% |
$31 |
|
Asset classes with most trading outflows in November |
Percentage of outflows |
Index dollar value($mil) |
|
Company stock |
34% |
$66 |
|
Target date funds2 |
28% |
$55 |
|
International equity funds |
13% |
$25 |
November investment portfolios:
- After reflecting market movements and trading activity, average asset allocation in equities increased from 68.1% in October to 68.9% in November.
- New contributions to equities decreased from 68.1% in October to 67.9% in November.
|
Asset classes with largest percentage |
Percentage of balance |
Index dollar value ($mil) |
|
Target date funds2 |
30% |
$68,654 |
|
Large U.S. equity funds |
26% |
$60,469 |
|
Stable value funds |
9% |
$21,635 |
|
Asset classes with most contributions in November |
Percentage of contributions |
Index dollar value($mil) |
|
Target date funds2 |
50% |
$531 |
|
Large U.S. equity funds |
20% |
$209 |
|
International equity funds |
7% |
$73 |
|
Returns for common indices |
November |
2022 YTD |
|
Bloomberg Barclays U.S. Aggregate Index |
3.68 % |
-12.62 % |
|
S&P 500 Index |
5.59 % |
-13.10 % |
|
Russell 2000 Index |
2.34 % |
-14.91 % |
|
MSCI All Country World ex-U.S. Index (net) |
11.80 % |
-15.37 % |
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 2 times the average daily net activity of the preceding 12 months.
2 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.
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