May observations:
- There was one day of above-normal1 activity—the first since January.
- Monthly net trading activity was 0.09% of balances, the lowest level on record and less than half the monthly average for the trailing five-year period (0.22%).
- 12 days favored fixed income (60% of days in May).
The Alight Solutions 401(k) Index statistics for the month of May:
|
Index statistics
|
May
|
2021 YTD
|
|
Total transfers as percentage of starting balance
|
0.09%
|
0.56%
|
|
# Fixed days
|
12 (60%)
|
34 (33%)
|
|
# Equity days
|
8 (40%)
|
68 (67%)
|
|
# Above-normal days
|
1
|
2
|
Inflows and outflows during the month of May:
- Trading inflows mainly went to stable value, international, and specialty funds.
- Outflows were primarily from company stock, as well as large and small U.S. equity funds.
|
Asset classes with most trading inflows in May
|
Percentage of inflows
|
Index dollar value ($mil)
|
|
Stable value
|
53%
|
$129
|
|
International
|
17%
|
$42
|
|
Specialty/Sector
|
9%
|
$22
|
| |
|
|
|
Asset classes with most trading outflows in May
|
Percentage of outflows
|
Index dollar value ($mil)
|
|
Company stock
|
44%
|
$106
|
|
Large U.S. equity
|
28%
|
$67
|
|
Small U.S. equity
|
13%
|
$31
|
May investment portfolios:
- After reflecting market movements and trading activity, average asset allocation in equities increased from 69.8% in April to 69.9% in May.
- New contributions to equities increased from 68.9% in April to 69.2% in May.
|
Asset classes with largest percentage of total balance at the end of May
|
Percentage of balance
|
Index dollar value ($mil)
|
|
Target date funds2
|
30%
|
$79,672
|
|
Large U.S. equity funds
|
26%
|
$68,684
|
|
Stable value funds
|
8%
|
$21,188
|
| |
|
|
|
Asset classes with most contributions in May
|
Percentage of contributions
|
Index dollar value ($mil)
|
|
Target date funds
|
47%
|
$539
|
|
Large U.S. equity funds
|
21%
|
$241
|
|
International equity funds
|
7%
|
$86
|
|
Returns for common indices
|
May
|
2021 YTD
|
|
Bloomberg Barclays U.S. Aggregate Index
|
0.33%
|
-2.29%
|
|
S&P 500 Index
|
0.70%
|
12.62%
|
|
Russell 2000 Index
|
0.21%
|
15.30%
|
|
MSCI All Country World ex-U.S. Index (net)
|
3.13%
|
9.87%
|
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.