September 20, 2012
--- Defined contribution plan participants transferred
assets from equities into fixed-income investments again in August, according
to the Aon Hewitt 401(k) Index. ---
Overall, 74% of the days in August
had transfer activities that favored fixed-income funds representing $277
million in total inflows or 0.2% of total assets. However, when company stock
activity is excluded, total equity outflows amounts to just $122 million (0.1%)
of participant balances.
The Index suggests much participant
uncertainty in August as daily transfer volumes remained very low compared with
historical levels. On average, only 0.021% of balances transferred on a net
daily basis, which is similar to the volume of transfers over the past three
months. August had just one day of above-normal transfer level—identical with
July. Another month of low transfer activity further diminished the trailing
12-month daily average, which dropped to 0.027%.
In net outflows, company stock funds
lost $155 million (49%), small U.S. equity funds lost $93 million (29%), and
mid-U.S. equity funds lost $23 million (7%) for the month.
All fixed-income asset classes
recorded net inflows in August. Similar to last month, bond funds received the
most inflows with $327 million (41%), while GIC/stable value funds took in $80
million (25%) and money market funds received $49 million (16%). The
lifestyle/pre-mixed asset class also had $38 million of inflows.
Employee-only contributions showed a
slight decline from 62.3% in equities to 62.1% at the end of August.
Participants’ overall equity allocation increased by 0.4% to 59.5% at the end
of August, due to the market gains among most equity asset classes.
More information is here.