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Alight Solutions 401(k) Index™: March 2024 Observations

Trading activity was subdued in March with just two above-normal1 days, according to the Alight Solutions 401(k) Index™. Investors favored equity funds on 11 of 20 days. Bond funds (44%) and large U.S. equity funds (43%) saw the most inflows, while target date funds2 (30%), stable value funds (20%) and company stock (17%) experienced the most outflows. New contributions to equities inched up from 69.6% in February to 69.7% in March, while average asset allocation in equities increased from 71.4% to 71.7%.

March observations:

  • On average, 0.008% of 401(k) balances were traded daily.
  • 11 of 20 days favored equity funds.

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

Index statistics

March

2024 YTD

Total transfers as percentage of starting balance

0.12%

0.45%

# Fixed days

9 (45%)

33 (54%)

# Equity days

11 (55%)

28 (46%)

# Above-normal1 days

2

14


Inflows and outflows during the month of March:

  • Trading inflows mainly went to bond, large U.S. equity and self-directed window funds.
  • Outflows were primarily from target date2, stable value and company stock funds.

Asset classes with most trading 

inflows in March

Percentage of inflows

Index dollar value ($mil)

Bond funds

44%

$137

Large U.S. equity funds

43%

$133

Self-directed window funds

8%

$26

Asset classes with most trading 

outflows in March

Percentage of outflows

Index dollar value ($mil)

Target date funds2 

30%

$94

Stable value funds

20%

$61

Company stock

17%

$53


March investment portfolios:

  • After reflecting market movements and trading activity, average asset allocation in equities increased from 71.4% in February to 71.7% in March.
  • New contributions to equities increased from 69.6% in February to 69.7% in March.

Asset classes with largest percentage

of total balance at the end of March

  Percentage of balance

  Index dollar value ($mil)  

Target date funds2

32%

$85,941

Large U.S. equity funds

28%

$76,308

International equity funds

7%

$17,866

Asset classes with most 

contributions in March

Percentage of contributions

Index dollar value($mil)

Target date funds2

47%

$1088

Large U.S. equity funds

22%

$515

International equity funds

7%

$164


Returns for common indices

March

2024 YTD

Bloomberg Barclays U.S. Aggregate Bond Index

0.92%

-0.78%

S&P 500 Index

3.22%

10.56%

Russell 2000 Index

3.58%

5.18%

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

3.13%

4.69%

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.

Related Insights


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Alight Solutions 401(k) Index™: First Quarter 2024 Observations

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