Data & Research August 2, 2011

Participant Transfers Heat Up Ahead of Federal Debt Agreement

Whether it was the debt crisis or the markets, participant transfers have perked up in recent days. 
Reported by

Aon Hewitt reports that in the days leading up to the recent agreement to raise the federal debt ceiling, 401(k) trading volume has reached “significant” levels—an indication that workers have been highly reactive amidst continuing uncertainty, according to the consultancy.

Aon Hewitt’s database of more than 100 401(k) plans, representing 4.7 million workers shows a marked increase in 401(k) trading volume since July 25. According to the firm, on a typical day, participant transfers total $300M-$400M in trades. However, late last week, trading volume was two-to-three times the normal level, reaching a peak of more than $900M on Thursday, July 28.

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Trading volume remained high on Monday, reaching $862M, as Congress moved closer to reaching a compromise.

According to Aon Hewitt’s 401(k) Index, last week’s transfer activity showed significant movement away from domestic equities into fixed income vehicles, primarily stable value funds.  In fact, 96% of assets moved into fixed income during the period, the third highest monthly transfer amount out of equities and into fixed income investments since Aon Hewitt began tracking this data in 1997. 

 

Deals & People August 2, 2011

Towers Watson Vet Joins the Hyas Group

The Hyas Group LLC announced the appointment of Scott Faris, JD, CFA as a Senior Consultant.
Reported by

In this role, Faris will be responsible for developing and managing client relationships with institutional sponsors of corporate, governmental and non-profit retirement plans.  

Faris joins the firm from Towers Watson Investment Services, where he was a Senior Investment Consultant in the Portland, Oregon, office. He is also a former colleague of the Hyas Group Principals at Arnerich Massena & Associates, where he was a Managing Director. 

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“We are very pleased to have Scott join our professional staff at the Hyas Group,” said Jayson Davidson, Managing Partner. “His many years of experience in advising retirement plan sponsors will materially strengthen our team of consultants, manager researchers and analysts in serving our core clients.”

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