A Summer Lull in Participant Trading

The Aon Hewitt 401(k) Index shows there were actually zero days of above-normal participant trading activity during July—making it the first month with no above-normal trading days since August 2014.

Aon Hewitt says just 0.021% balances transferred each day. Among the 22 trading days in the month, the index reveals 12 had more money flow into fixed income than equities.

The most popular asset classes for inflows were GIC/stable value, large U.S. equity funds, and money market, while the most common classes for outflows were target-date, company stock and specialty/sector funds. Target-date funds continued to receive the majority of new contributions into individuals’ accounts.

The index finds participants’ overall allocation to equities decreased to 66.4% from 67.0%, while future contributions to equities dipped from 66.8% from 67.2%.

July Capital market returns were mixed, Aon Hewitt says, with the large-cap U.S. and global stock indexes showing positive returns. Small-Cap equities, both in the U.S. and globally, delivered negative returns.