DC Participants Mostly Stayed Put in Investments in August

However, when trading did occur, DC participants favored fixed income.

By Rebecca Moore | September 22, 2016

Trading in defined contribution (DC) plans in August was among the lowest on record, according to the Aon Hewitt 401(k) Index.

Just 0.11% of total balances traded in the month—the second lowest monthly total ever (0.10% in April 2012). No days in August had above-normal trading activity. The average daily trading activity for the month was 0.013%, the lowest monthly level since Aon Hewitt began tracking trading activity in 1997.

When trading did occur, bond funds received the most inflows ($86 million), followed by GIC/stable value funds ($42 million) and emerging markets funds ($26 million). Asset classes with the most outflows included company stock funds ($83 million), large U.S. equity funds ($61 million) and small U.S. equity funds ($15 million).

After combining contributions, trades, and market activity in participants’ accounts, the percentage in equities at the end of August was 64.9% a decrease from 65.8% in July. New contributions continue to favor stocks, with 65.6% of employee contributions investing in equities—a slight decrease from 65.7% in July.

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