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Alight Solutions 401(k) Index™: April 2023 Observations

April was the lightest trading month for 401(k) investors in the more than 25-year history of the Alight Solutions 401(k) IndexTM.  On average, 0.008% of balances were traded daily, down from 0.010% in March. There were no above-normal1 days in April. New contributions to equities remained unchanged at 68.4%.

April observations:

  • On average, 0.008% of 401(k) balances were traded daily.
  • 15 of 19 days favored fixed income funds.

The Alight Solutions 401(k) IndexTM statistics for the month of April:

Index statistics

April

2023 YTD

Total transfers as percentage of starting balance

0.07%

0.27%

# Fixed days

15 (79%)

56 (69%)

# Equity days

4 (21%)

25 (31%)

# Above-normal1 days

0

2


Inflows and outflows during the month of April:

  • Trading inflows mainly went to bond, money market and international equity funds.
  • Outflows were primarily from large U.S. equity, target date2 and company stock funds.

Asset classes with most trading 

inflows in April

Percentage of inflows

Index dollar value ($mil)

Bond funds

65%

$96

Money market funds

14%

$20

International equity funds

12%

$18

Asset classes with most trading 

outflows in April

Percentage of outflows

Index dollar value ($mil)

Large U.S. equity funds

34%

$49

Target date funds2

25%

$36

Company stock

18%

$26


April investment portfolios:

  • After reflecting market movements and trading activity, average asset allocation in equities remained 68.8% from March to April.
  • New contributions to equities remained at 68.4% from March through April.

Asset classes with largest percentage 

of total balance at the end of April

  Percentage of balance

  Index dollar value ($mil)  

Target date funds2

31%

$70,061

Large U.S. equity funds

26%

$59,785

Stable value funds

9%

$19,862

Asset classes with most 

contributions in April

Percentage of contributions

Index dollar value($mil)

Target date funds2

49%

$588

Large U.S. equity funds

21%

$245

International equity funds

7%

$84


April market observations:

Returns for common indices

April

2023 YTD

Bloomberg Barclays U.S. Aggregate Index

0.61%

3.59%

S&P 500 Index

1.56%

9.17%

Russell 2000 Index

-1.80%

0.89%

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

1.74%

8.72%

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.

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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