April 15, 2013 (PLANSPONSOR.com) – Most defined contribution plan participants were content to stay put with their investments in March, according to the Aon Hewitt 401(k) Index.
Transfers averaged 0.026% of total balances daily—just above the trailing 12-month average at 0.025%, and March had only three days with transfer activity above normal total net transfer activity in March was moderate, totaling $345 million or 0.24% of total participant balances.
However, for the first quarter, total net transfer activity was among the highest quarters on record. In total, $1.19 billion moved into diversified equities, which is the largest quarterly dollar reported by the Aon Hewitt 401(k) Index (1997 inception). As a percent of total participant balances, the quarter totaled 0.88%—the highest since the current bull market began in the second quarter of 2009. Net daily transfers favored fixed income funds for 35% of trading days in March compared to 63% in February. Transfers into diversified equities (equity excluding company stock) asset classes totaled $277 million of total flows or 0.20% of total assets, up significantly from 0.06%.