401(k) Participants Continued to Favor Fixed Income in May

Asset classes with the most inflows were Bond funds, GIC/Stable Value funds, and Money Market funds.

May was another light month of trading activity by 401(k) investors, according to the Aon Hewitt 401(k) Index.

In total, 0.16% of balances traded in May—which is the same percentage of balances traded in April. For the month of May, there were two days of above-normal trading activity.

Asset classes with the most inflows were Bond funds ($121 million), GIC/Stable Value funds ($89 million), and Money Market funds ($34 billion). The most trading outflows were posted to Large U.S. Equity funds ($152 million), Mid U.S. Equity funds ($34 million), and Company Stock funds ($24 million).

After combining contributions, trades, and market activity in participants’ accounts, the percentage in equities at the end of May remained unchanged at 64.8%. New contributions continue to favor stocks, with 65.7% of employee contributions invested in equities—a decrease from 65.9% in April.

Target-date funds ($373 million) and Large U.S. Equity funds ($180 million) received the most employee contributions in May, and target-date funds had the largest percentage of total participant balances, at 24%.

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