A total of $288 million moved from fixed-income investments into equities during the month. Excluding company stock fund flows, diversified equities gained transfers of $498 million, Hewitt data showed. In addition, nearly three-quarters (71%) of the days were equity-oriented in April.
Both large and small U.S. equity funds received large inflows, and together accounted for two-thirds of total transfers. Large U.S. equities gained $227 million and small U.S. equities received $211 million. Lifestyle/premixed funds also received $110 million in transfers during the month.
All three fixed-income asset classes experienced outflows in April—mainly from GIC/stable value funds, which lost a total of $294 million. In addition, company stock funds had outflows of $210 million. As the MSCI EAFE Index declined (while domestic markets were up), international funds had net transfers out of $86 million.
Participants’ overall equity holdings rose by 0.6% in April to 59.5%, due to stock market return and participant transfer activity. GIC/stable value funds held 24.63% of 401(k) assets at the end of the month, while large U.S. equity and lifestyle/premixed held 17.86% and 11.86% of assets, respectively.
Company stock funds accounted for 14.2% of assets at the end of April.
Employee-only equity contribution was also up—from 60.2% to 60.9% at the end of April. Lifestyle/premixed funds took in 24.19% of participant contributions during the month. Large U.S. equity took in 17.27% and GIC/stable value funds received 18.71% of participant contributions.
Lifestyle/premixed, GIC/stable value, and large U.S. equity funds were also the biggest receivers of overall contributions to 401(k) plans in April at 23.74%, 17.29%, and 15.96%, respectively. Company stock funds received 13.19% of overall plan contributions during the month.
The “Hewitt 401(k) Index Observations” for April is here.