Alight Solutions 401(k) Index™: June 2021 Observations

Amid a volatile but rising stock market, 401(k) investors were light traders and content to watch their balances rise, according to the Alight Solutions 401(k) Index. There were no days of above-normal activity.

June observations:
•   Average net trading activity was 0.009% of 401(k) balances, down from 0.011% in May.
•   Average asset allocation in equities rose to 70.2%, the highest level in 20 years.

The Alight Solutions 401(k) Index statistics for the month of June:

Index statistics	June	2021 YTD
Total transfers as percentage of starting balance	0.06%	0.59%
# Fixed days	10 (45%)	44 (35%)
# Equity days	12 (55%)	80 (65%)
# Above-normal days	0	2

Inflows and outflows during the month of June:
• Trading inflows mainly went to bond funds, international funds, and specialty/sector funds.
• Outflows were primarily from stable value funds, large U.S. equities, and self-directed brokerage windows.

Asset classes with most trading inflows in June	Percentage of inflows	Index dollar value ($mil)
Bond	33%	$53
International	27%	$44
Specialty/Sector	20%	$33

Asset classes with most trading outflows in June	Percentage of outflows	Index dollar value ($mil)
Stable value	47%	$76
Large U.S. equities	30%	$48
Self-directed brokerage window	9%	$15

June investment portfolios:
• After reflecting market movements and trading activity, average asset allocation in equities increased from 69.9% in May to 70.2% in June, the highest since May 2001.
• New contributions to equities remained at 69.2%.

Asset classes with largest percentage of total balance at the end of June	Percentage of balance	Index dollar value ($mil)
Target date funds^[1]	30%	$80,492
Large U.S. equity funds	26%	$70,020
Stable value funds	8%	$20,885

Asset classes with most contributions in June	Percentage of contributions	Index dollar value ($mil)
Target date funds	48%	$526
Large U.S. equity funds	21%	$228
International equity funds	7%	$82

June market returns:

Returns for common indices	June	2021 YTD
Bloomberg Barclays U.S. Aggregate Index	0.70%	-1.60%
S&P 500 Index	2.33%	15.25%
Russell 2000 Index	1.94%	17.54%
MSCI All Country World ex-U.S. Index (net)	-0.65%	9.16%

_{^{[1] 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.}}

Members of the media: please contact Landis Cullen for questions about the Alight Solutions 401(k) Index™.

Alight Solutions 401(k) Index™: June 2021 Observations

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