The Markets September 18, 2018

August Marks Second Consecutive Month With No Above-Normal Trading

On the majority of trading days, fixed-income funds led, according to the Alight Solutions 401(k) Index.

Reported by

August had no days of above-normal trading, the second consecutive month this has occurred since a year ago May and June, according to the Alight Solutions 401(k) Index. During the month, 15 out of 23 days favored fixed-income funds, representing 65% of the trades. By comparison, eight days favored equities, representing 35% of the trades.

Trading inflows mainly went to stable value funds (32%), mid U.S. equity funds (20%) and large U.S. equity funds (19%). Trading outflows were primarily from target-date funds (TDFs) (38%), company stock (32%) and emerging markets funds (13%).

On average, a mere 0.013% of 401(k) plan balances were traded daily. Asset allocation in equities increased to 69.2% at the end of last month, up slightly from 68.9% at the end of July. As for new contributions, 68.1% were invested in equities, the same percentage as in July.

Asset classes with the largest percentage of total balances at the end of August were target-date funds (28%, or $58.24 billion), large U.S. equity funds (25%, or $53.43 billion) and stable value funds (10%, or $20.55 billion).

Asset classes with the most contributions in August were target-date funds (47%, or $524 million), large U.S. equity funds (20%, or $223 million) and international funds (8%, or $88 million).

Domestic equities delivered positive returns for the month, with large U.S. equities up 3.3% and small U.S. equities up 4.3%. U.S. bonds gained 0.6%. International equities lost 02.1% during August.

Data & Research September 17, 2018

One-Third of Americans Lack an Accurate Perception of Their Finances

Many respondents to a Prudential Financial survey are misjudging how well-off they are.

Reported by

One-third of Americans do not have an accurate handle on the state of their own finances, thinking they are better or worse off than they actually are, Prudential Financial Inc. learned in its Financial Wellness Census.

This is one of a three-pronged effort “to kick-start a conversation among Americans from all walks of life about their relationship with money and its impact on their well-being,” a representative from the company says.

“Our relationship with money can affect our physical health, stress levels and state of mind, family dynamics and even our performance at work,” says Stephen Pelletier, executive vice president and chief operating officer (CIO) of Prudential’s U.S.-based businesses. “That’s why it’s so important to us as a company to hear from Americans across the country about the financial challenges and opportunities they face. Only by listening can we truly learn what people need, to help them get on the path to financial wellness and stay on the right track throughout their lives.”

The survey also found that Americans’ biggest financial worry is that they will never be able to retire and will have to continue working as long as they can hold a job. More than 50% think they will be able to achieve their financial goals, but less than 50% are on track to achieve them.

Prudential and Chadwick Martin Bailey conducted the survey among 3,013 adults.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

In addition, Prudential also launched a new campaign created in partnership with Droga5 called “The State of US,” which includes a series of films that spotlight the financial challenges facing Americans, particularly young parents, women, pre-retirees and the self-employed. The stories reflect the most common financial challenges facing Americans, such as longer life expectancies, the cost of higher education and the changing nature of employment.

«