Skip to content
Alight named by Fortune as one of the ‘100 Best Companies to Work For’ in 2024

Alight Solutions 401(k) Index™: Q3 2023 Observations

 
401(k) investors sought stability in Q3, with net trading favoring fixed income funds on 39 of 63 days, according to the Alight Solutions 401(k) Index™.  Money market funds (33%) and bond funds (31%) had the most trading inflows with large U.S. equity funds following at a distant third (19%). There were only three above-normal1 days for the quarter.  

Third quarter observations:

•   Net transfers for the quarter were 0.22% of balances.
•   39 out of 63 trading days in the third quarter had net trading dollars moving from equities to fixed income.

Alight Solutions 401(k) Index™ statistics for Q3 2023 and year-to-date:

Index statistics

Q3 2023

2023 YTD

Total transfers as percentage of starting balance

0.22%

0.58%

# Fixed days

39 (62%)

117 (63%)

# Equity days

24 (38%)

70 (37%)

# Above-normal1 days

3

7

Asset classes with most

trading inflows in Q3 2023

Percentage of inflows

Index dollar value ($mil)

Money market funds

33%

$169

Bond funds

31%

$162

Large U.S. equity funds

19%

$99

Asset classes with most

trading outflows in Q3 2023

Percentage of outflows

Index dollar value ($mil)

Company stock

37%

$190

Stable value funds

31%

$161

Mid U.S. equity funds

11%

$59

Returns for common indices

Q3 2023

2023 YTD

Bloomberg Barclays U.S. Aggregate Index

-3.23%

-1.21%

S&P 500 Index

-3.27%

13.07%

Russell 2000 Index

-5.13%

2.54%

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

-3.77%

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.

[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.

Related Insights


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

Trading activity rose slightly in April with four above-normal1 days compared to just two in March, according to the Alight Solutions 401(k) IndexTM.

2024 Universe Benchmarks Report

Alight’s 2024 Universe Benchmarks report provides a comprehensive look at the savings and investment behaviors of participants in defined contribution (DC) plans.

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

401(k) investors were active in Q1, logging 14 above-normal1 days, according to the Alight Solutions 401(k) Index™. The distribution of those days reveals a slowing trend, however, with eight taking place in January, followed by four in February and just two in March.