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

September saw light trading activity with no above-normal1 days, according to the Alight Solutions 401(k) IndexTM. Fixed income days outpaced equity days three to one with bond (55%) and money market (25%) funds topping inflows. Average asset allocation in equities slipped back under 70% to 69.6%, while contributions to equities moved up slightly to 68.9%.

September observations:

  • On average, 0.007% of 401(k) balances were traded daily.
  • 15 of 20 days favored fixed income funds.



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

Index statistics

September

2023 YTD

Total transfers as percentage of starting balance

0.06%

0.58%

# Fixed days

15 (75%)

117(63%)

# Equity days

5 (25%)

70 (37%)

# Above-normal1 days

0

7


Inflows and outflows during the month of September:

  • Trading inflows mainly went to bond, money market funds and company stock.
  • Outflows were primarily from target date2, mid U.S. equity funds and small U.S. equity.

Asset classes with most trading 

inflows in September

Percentage of inflows

Index dollar value ($mil)

Bond funds

55%

$82

Money market funds

25%

$37

Company stock

9%

$13

Asset classes with most trading 

outflows in September

Percentage of outflows

Index dollar value ($mil)

Target date funds2

38%

$56

Mid U.S. equity funds

22%

$32

Small U.S. equity funds

13%

$19


September investment portfolios:

  • After reflecting market movements and trading activity, average asset allocation in equities decreased from 70.0% in August to 69.6% in September.
  • New contributions to equities increased from 68.7% in August to 68.9% in September.

Asset classes with largest percentage

of total balance at the end of September

  Percentage of balance

  Index dollar value ($mil)  

Target date funds2

31%

$72,146

Large U.S. equity funds

27%

$62,533

Stable value funds

8%

$18,585

Asset classes with most 

contributions in September

Percentage of contributions

Index dollar value($mil)

Target date funds2

51%

$663

Large U.S. equity funds

20%

$265

International equity funds

7%

$91


Returns for common indices

September

2023 YTD

Bloomberg Barclays U.S. Aggregate Index

-2.54%

-1.21%

S&P 500 Index

-4.77%

13.07%

Russell 2000 Index

-5.89%

2.54%

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

-3.16%

5.34%

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.

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