The Markets May 13, 2019
Investors Continue Moving from Equities into Fixed Income
April marks the 15th month in a row that 401(k) investors have been fleeing equities for the safety of fixed income, Alight says.
Reported by Lee Barney
The Alight Solutions 401(k) Index for April marks the 15th month in a row that investors have been moving out of equities and into fixed income. On average, a mere 0.014% of 401(k) balances were traded daily.
Nineteen of the 21 trading days in the month (90%) favored fixed income funds. Year-to-date, 401(k) investors have favored fixed income on 73 trading days (89%) and equity on only nine days (11%). April had two above-normal trading days. Year-to-date, there have been 11 such days.
Asset classes with the most trading inflows in April were bond funds (63% and $227 million in inflows), international funds (11%, $39 million) and target-date funds (TDFs) (10%, $38 million). Asset classes with the most trading outflows in April were large U.S. equity funds (47%, $170 million), company stock (35%, $127 million) and small U.S. equity funds (13%, $46 million).
Asset classes with the largest percentage of total balances at the end of April were TDFs (29%, $61.33 billion), large U.S. equity funds (26%, $54.60 billion) and stable value funds (10%, $21.14 billion). Asset classes with the most contributions in April were TDFs (47%, $549 million), large U.S. equity funds (20%, $240 million) and international funds (7%, $82 million).
All the common indices saw positive performance in April, according to Alight Solutions. The U.S. bond market was up just over 0%. Large U.S. equities were up 4.1%, small U.S. equities were up 3.4% and international equities gained 2.6%.
Nineteen of the 21 trading days in the month (90%) favored fixed income funds. Year-to-date, 401(k) investors have favored fixed income on 73 trading days (89%) and equity on only nine days (11%). April had two above-normal trading days. Year-to-date, there have been 11 such days.
Asset classes with the most trading inflows in April were bond funds (63% and $227 million in inflows), international funds (11%, $39 million) and target-date funds (TDFs) (10%, $38 million). Asset classes with the most trading outflows in April were large U.S. equity funds (47%, $170 million), company stock (35%, $127 million) and small U.S. equity funds (13%, $46 million).
Asset classes with the largest percentage of total balances at the end of April were TDFs (29%, $61.33 billion), large U.S. equity funds (26%, $54.60 billion) and stable value funds (10%, $21.14 billion). Asset classes with the most contributions in April were TDFs (47%, $549 million), large U.S. equity funds (20%, $240 million) and international funds (7%, $82 million).
All the common indices saw positive performance in April, according to Alight Solutions. The U.S. bond market was up just over 0%. Large U.S. equities were up 4.1%, small U.S. equities were up 3.4% and international equities gained 2.6%.
You Might Also Like:
Pontera Adds 3 Execs With 401(k) Industry Experience
Firm connecting financial advisers to 401(k) investments brings executives with experience from firms including Edelman Financial Engines, Voya, and Principal.
NAPA Head Warns of 401(k) Revenue Grab by Policymakers
Plan adviser association kicks off its national conference with discussion of Congressional threats to tax-deferred retirement plans amid 2025 negotiations...
Father of the 401(k) Is Planting a New Workplace Savings Idea
Ted Benna has designed a new tax-advantaged workplace incentive program in which workers automatically earn ‘grains of wheat’ that can...
« Principal Launches New Retirement Plan Package Aimed at Small Plans