Participant Equity Allocations Up Slightly in November

Though most trading days favored fixed income, large U.S. equity funds received the most inflows.

November was another slow trading month in defined contribution plans with no days of above-normal trading activity, according to the Aon Hewitt 401(k) Index.

Participants favored fixed income over equities when they made trades. In November, 60% of the trading days showed more inflows to fixed income.

However, large U.S. equity funds received the most inflows, at $112 million. International equity took in $30 million, and GIC/stable value funds posted $26 million in net inflows.

Topping the list of fund outflows were target-date funds ($118 million), while small U.S. equity funds posted a net $27-million outflow and participants transferred $19 million out of company stock funds.

After combining contributions, trades, and market activity, the overall equity allocation in participants’ accounts rose to 65.6% at month-end, up slightly from 65.5% at the end of October. Future contributions to equities increased to 66.4%, from 66.0% in October.

More information from the Index is here.