401(k) investors remained light traders in September, according to the Alight Solutions 401(k) IndexTM. During trades, investors tended to move money from equities to fixed incomes. There were no days with above-normal1 trading activity.
September observations:
• On average, 0.009% of 401(k) balances were traded daily.
• 19 of 21 days favored fixed income funds.
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The Alight Solutions 401(k) Index statistics for the month of September: |
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Index statistics |
September |
2021 YTD |
|
Total transfers as percentage of starting balance |
0.12% |
0.51% |
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# Fixed days |
19 (90%) |
98 (52%) |
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# Equity days |
2 (10%) |
90 (48%) |
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# Above-normal days |
0 |
2 |
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Inflows and outflows during the month of September: |
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Asset classes with most trading inflows in September
| Percentage of inflows | Index dollar value ($ mil) | |
|---|---|---|
| Stable value funds | 45% | $146 |
| Bond funds | 37% | $120 |
| Money market funds | 14% | $46 |
Asset classes with most trading outflows in September
| Percentage of outflows | Index dollar value ($ mil) | |
|---|---|---|
| Large U.S. equity funds | 46% | $147 |
| Mid U.S. equity funds | 20% | $66 |
| Target date funds | 14% | $45 |
September investment portfolios:
- After reflecting market movements and trading activity, average asset allocation in equities decreased from 70.2% in August to 69.8% in September.
- New contributions to equities increased from 69.3% in August to 69.4% in September.
Asset classes with largest percentage of total balance at end of September
| Percentage of balance | Index dollar value ($ mil) | |
|---|---|---|
| Target date funds | 30% | $79,956 |
| Large U.S. equity funds | 26% | $69,492 |
| Stable value funds | 8% | $20,965 |
Asset classes with most contributions in September
| Percentage of contributions | Index dollar value ($ mil) | |
|---|---|---|
| Target date funds | 48% | $587 |
| Large U.S. equity funds | 21% | $254 |
| International equity funds | 8% | $93 |
Returns for common indices
| September | 2021 YTD | |
|---|---|---|
| Bloomberg Barclays U.S. Aggregate Index | -0.9% | -1.6% |
| S&P 500 Index | -4.7% | 15.9% |
| Russell 2000 Index | -3.0% | 12.4% |
| MSCI All Country World ex-U.S. Index (net) | -3.2% | 5.9% |
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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.
