December was a light trading month
for investors in defined contribution plans according to the Aon Hewitt
401(k) Index—a sharp contrast to November, which saw the highest trading
activity in over three years. There were zero above-normal trading days
in December. On average, 0.017% of balances traded each day, and when
participants made trades, they favored equities over fixed income funds.
Small U.S. equity funds saw $130 million in inflows in December,
followed by Large U.S. equity funds ($102 million) and Mid U.S. equity
funds ($71 million). Company stock funds saw the most outflows during
the month, at $163 million. Bond funds posted outflows of $114 million,
while Stable Value funds posted outflows of $49 million.
combining contributions, trades, and market activity in participants’
accounts, the percentage of balances in equities was 65.4% at the end of
December, up from 65.0% at the end of November. New contributions
continue to favor stocks, but at a lower rate than in the past. In
December, 65.2% of employee contributions were into equities—a decrease
from 65.7% in November.
More information is here.