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Alight Solutions 401(k) Index™: Fourth Quarter 2022 Observations

401(k) plan investors were light traders in the final quarter of 2022, according to the Alight Solutions 401(k) IndexTM. There were three above-normal1 trading days in the quarter, down from five above-normal1 days seen in Q3. Most days (77%) favored fixed income with stable value funds receiving the highest percentage of inflows (52%). Target date funds2 (42%) and company stock (34%) had the most outflows for the quarter.

Fourth quarter observations:  

  • Net transfers for the quarter were 0.31% of balances.
  • 48 out of 62 trading days in the fourth quarter had net trading dollars moving from equities to fixed income.

Alight Solutions 401(k) Index™ statistics for Q4 2022 and year-to-date:

Index statistics

Q4 2022

2022 YTD

Total transfers as percentage of starting balance

0.31%

1.27%

# Fixed days

48 (77%)

183 (73%)

# Equity days

14 (23%)

67 (27%)

# Above-normal1 days

3

41

Asset classes with most

trading inflows in Q4 2022

Percentage of inflows

Index dollar value ($mil)

Stable value funds

52%

$338

Bond funds

24%

$156

Money market funds

19%

$123

Asset classes with most

trading outflows in Q4 2022

Percentage of outflows

Index dollar value ($mil)

Target date funds2

42%

$274

Company stock

34%

$220

International equity funds

9%

$58

Fourth quarter market observations:  

Returns for common indices

Q4 2022

2022 YTD

Bloomberg Barclays U.S. Aggregate Index

1.87%

-13.01%

S&P 500 Index

7.56%

-18.11%

Russell 2000 Index

6.23%

-20.44%

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

14.28%

16.00%

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

Related Insights


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

With just one above-normal day in January, 401(k) plan investors began 2023 with light trading, according to the Alight Solutions 401(k) Index™.

Alight Solutions 401(k) Index™: December 2022 Observations

December was the second lightest trading month in 2022

Alight Solutions 401(k) Index™: October 2022 Observations

October was another light trading month for 401(k) plan investors, according to the Alight 401(k) Index™.