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Caution Still Prevails for 401(k) Participants

(Cont’d…)

All fixed-income asset classes recorded net inflows in September. Similar to August, GIC/stable value funds received the most inflows with $134 million (47%), while bond funds took in $63 million (22%) and money market funds received $23 million (8%). The premixed asset class also had $25 million (9%) of inflows. In the third quarter, both GIC/stable value and bond asset classes took in 36% of the inflows—about $305 million each. Together money market and premixed assets classes accounted for the next 20%. Specialty sector funds also received a noteworthy $46 million (5%) of inflows, which is much higher than usual for this asset class.  

In total, 62.1% of employee discretionary contributions were directed to equities for September, which is unchanged from August. For the quarter, an identical 62.1% of employee contributions into the plan were in equities compared to 61.6% during the second quarter, on average.  

Participants’ overall equity allocation ticked upward hitting 60% by the end of September, compared to 59.5% at the end of August. The third quarter began with 59.3% of participant investments allocated to equities.  

More information is here.

 

Rebecca Moore
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