The net direction of transfers during the month was toward equities, despite 55% of days favoring fixed income investments. Overall, $151 million transferred into diversified equities (equities excluding employer stock) from fixed income investments.
The outflows from company stock did not offset the net transfer amount by much ($39 million), allowing the net transfer movement for the month to record a noteworthy $112 million away from fixed income. The total transfer amount was $219 million within the Index for March, about a third less than both January and February.
GIC/stable value funds accounted for 44% ($95 million) of the outflows, followed by bond assets at 30% ($66 million). Company stock had 18% ($39 million) of outflows, and the small U.S. equity asset class accounted for the remaining 8% ($17 million).The largest inflow amounts went into lifestyle/pre-mixed funds and large U.S. equity funds, which received 41% ($90 million) and 40% ($88 million) of inflows, respectively. Participants also moved 6% ($12 million) of net inflows into self-directed brokerage window funds.
As domestic markets continued to rally, employee discretionary contribution rates moved almost a full percentage point toward stocks, with the overall allocation directed to equity funds now averaging 62.6% in March, up from 61.7% in February. The equity allocation rates rose almost 3% through the first quarter.The total asset allocation of equity asset classes continued to rise in March; equities now hold 60.6% of total assets, which is a 0.4% increase for the month.
« Institutional Investors See Healthy First Quarter