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

June was another active trading month for 401(k) investors, according to the Alight 401(k) IndexTM. There were 5 above-normal1 trading days, and all but 3 days in the month had net trading flows going from equities to fixed income.
        
June observations:       

  • On average, 0.015% of 401(k) balances were traded daily.
  • 18 of 21 days favored fixed income funds.

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

Index statistics

June

2022 YTD

Total transfers as percentage of starting balance

0.19%

0.86%

# Fixed days

18 (86%)

93 (75%)

# Equity days

3 (14%)

31 (25%)

# Above-normal1 days

5

33

Inflows and outflows during the month of June:

  • Net trading inflows exclusively went to fixed income funds with stable value leading the way.
  • Outflows were primarily from target date2, large U.S. equity and international equity funds.

Asset classes with most

trading inflows in June

Percentage of inflows

Index dollar value ($mil)

Stable value funds

82%

$368

Money market funds

14%

$62

Bond funds

4%

$16

Asset classes with most

trading outflows in June

Percentage of outflows

Index dollar value ($mil)

Target date funds2

53%

$238

Large U.S. equity funds

19%

$85

International equity funds

8%

$37

June investment portfolios:

  • After reflecting market movements and trading activity, average asset allocation in equities decreased from 68.8% in May to 67.7% in June.
  • New contributions to equities decreased from 69.0% in May to 68.7% in June.        

Asset classes with largest percentage of

total balance at the end of June

Percentage of balance

Index dollar value ($mil)

Target date funds2

30%

$65,051

Large U.S. equity funds

26%

$56,071

Stable value funds

10%

$21,564

Asset classes with most

contributions in June

Percentage of contributions

Index dollar value ($mil)

Target date funds2

49%

$574

Large U.S. equity funds

21%

$245

International equity funds

7%

$83

Returns for common indices

June

2022 YTD

Bloomberg Barclays U.S. Aggregate Index

-1.7%

-10.4%

S&P 500 Index

-8.3%

-20.0%

Russell 2000 Index

-8.2%

-25.2%

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

-8.6%

-19.4%

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.

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Alight Solutions 401(k) Index™

Monthly and quarterly Alight Solutions 401(k) Index Reports

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

401(k) plan investors were light traders in July, according to the Alight 401(k) Index™. There were no above-normal trading days as Wall Street posted its best month since November 2020.

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™.