Alight Solutions 401(k) Index™: August 2021 Observations With stock market indices posting their seventh straight month of gains in August, some 401(k) traders were in profit-taking mode, according to the Alight Solutions 401(k) Index. Net trading activity in August was 0.13% of balances, up from 0.07% in July. Nearly all trading days in the month saw money moving from equities to fixed income. August observations: On average, 0.01% of 401(k) balances were traded daily. 20 of 22 days favored fixed income funds. The Alight Solutions 401(k) Index statistics for the month of August: Index statistics August 2021 YTD Total transfers as percentage of starting balance 0.13% 0.50% # Fixed days 20 (91%) 84 (50%) # Equity days 2 (9%) 83 (50%) # Above-normal days 0 2 Inflows and outflows during the month of August: Trading inflows mainly went to stable value, bond and specialty/sector funds. Outflows were primarily from large U.S. equity, small U.S. equity and company stock funds. Asset classes with most trading inflows in August Percentage of inflows Index dollar value ($mil) Stable value funds 47% $153 Bond funds 28% $92 Specialty/Sector funds 9% $29 Asset classes with most trading outflows in August Percentage of outflows Index dollar value ($mil) Large U.S. equity funds 36% $117 Small U.S. equity funds 22% $73 Company stock 21% $69 August investment portfolios: After reflecting market movements and trading activity, average asset allocation in equities remained the same at 70.2% in August. New contributions to equities decreased from 69.4% in July to 69.3% in August. Asset classes with largest percentage of total balance at- the end of August Percentage of balance Index dollar value ($mil) Target date funds 30% $78,311 Large U.S. equity funds 27% $70,232 Stable value funds 8% $19,874 Asset classes with most contributions in August Percentage of contributions Index dollar value ($mil) Target date funds 48% $493 Large U.S. equity funds 21% $216 International equity funds 7% $75 August market observations: Returns for common indices August 2021 YTD Bloomberg Barclays U.S. Aggregate Index -0.19% -0.69% S&P 500 Index 3.04% 21.58% Russell 2000 Index 2.24% 15.83% MSCI All Country World ex-U.S. Index (net) 1.90% 9.40% Members of the media: please contact Landis Cullen for questions about the Alight Solutions 401(k) Index™.