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The Markets December 17, 2013
DC Participants Less Active in November
Defined contribution plan participants saw average daily transfer activity decline in November compared with October, according to the Aon Hewitt 401(k) Index.
Reported by PLANADVISER staff
On average, 0.024% of total balances transferred daily, slightly below the 12-month daily average of 0.029%. Only two days in November had transfer activity above normal levels.
Total net transfer activity in November amounted to $370 million or 0.24% of total participant balances, and favored diversified equities for 70% of trading days in November. Transfers into equities totaled $339 million of total flows or 0.22% of total assets. Excluding company stock activity, diversified equity outflows totaled $231 million or 0.15% of participant balances.
Net outflow activity in November was led by GIC/stable value funds with $140 million (38%), company stock funds with $108 million (29%), and bond funds with $70 million (19%) transferring out. Among the asset classes with net inflows for November, large U.S. funds gained the most receiving $184 million (50%) of flows. Additionally, international funds had $112 million (30%), while mid U.S. equity funds claimed $38 million (10%) of the monthly inflows.
Employee discretionary contributions, another measure of participant sentiment, increased to 65.2% invested in equities for November, up from 65.0% in October. On average, participants’ overall equity allocation increased to 64.6% at the end of November, up from 64.1% in October.
More information about November participant transfer activity is here.