401(k) Asset Flows Swing over to Equities in October

November 8, 2010 (PLANSPONSOR.com) – For the first time in five months, 401(k) participants’ asset transfers were equity oriented in October after a long run of being fixed-income directed, according to the latest Aon Hewitt 401(k) Index data.

An Aon Hewitt news release said out of 21 trading days in October, 12 were equity oriented while nine were oriented toward fixed income.

Approximately $162 million moved out of equities into fixed income investments on a net basis, representing 0.14% of total assets.

According to the news release, nearly 90% of the transfers came from GIC/stable value and money market funds. GIC/stable value funds saw the largest outflows, with a total of $166 million transferred out (net) during the month while. Money market funds had $60 million in outflows by comparison.

Meanwhile, premixed/lifestyle funds received the largest net inflows, totaling $87 million. Small U.S. equity funds had inflows of $33 million, followed by international ($28 million) and emerging markets funds ($28 million).