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

Inflows and outflows during the month of May:

• Trading inflows mainly went to money market, bond and stable value funds.
• Outflows were primarily from target date², large U.S. equity and small U.S. equity funds.

May investment portfolios:

• After reflecting market movements and trading activity, average asset allocation in equities remained at 68.8% from April to May.
• New contributions to equities increased from 68.4% in April to 68.6% in May.

May market observations:

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.}