Investing July 27, 2012
Equities Lose 401(k) Participant Assets in June
July
27, 2012 (PLANSPONSOR.com) - Defined contribution (DC) plan participants
transferred monies from equities into fixed-income investments in June despite
the market rally, according to the results of the Aon Hewitt 401(k) Index.
Reported by Jay Polansky
Overall, 67% of the month’s days had transfer activities that favored fixed-income funds during the month. In sum, $253 million transferred out of diversified equities (excluding company stock) into fixed-income investments.
Large U.S. funds lost the largest amount—$84 million (30% of transfers)—followed by small U.S. funds ($60 million, 21%) and premixed funds ($42 million, 15%). International funds and balanced funds also had net outflows of $41 million and $22 million, respectively.
On average, equity exposure was up 0.3% to 59.3% at the end of June. This is down slightly from 60.6% at the beginning of the quarter.
More information is available here.
You Might Also Like:
Mutual Funds See First Net Inflows in More Than 2 Years
Despite net inflows to mutual funds in February, reversing the long-term trend of outflows is unlikely, according to analysts.
Minnesota Sponsor Sues Adviser for True-Up Plan Amendment
The cost of a plan amendment to allow safe harbor and true-up contributions prompted Great Lakes Management Co. to allege...
Benefits |
Molina Healthcare Close to Win in ERISA Lawsuit
A California federal judge’s ruling in an ERISA lawsuit against Molina Healthcare provides a window into this court’s thinking on...