Investing December 8, 2005

Hewitt: Most November Trading Days Equity Oriented

December 8, 2005 (PLANSPONSOR.com) - Equities were on fire in November in 401(k) transfer activity with a majority of trades on 76% of trading days headed for the stock market, according to Hewitt Associates' monthly K plan index.
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A Hewitt news release said that November equity data represented the largest percentage of equity oriented net transfer activity since January 2004.

Overall, net transfer activity in November was a modest 0.03% – flat over October’s net transfer totals. Some 12 of November’s trading days were oriented toward fixed income, Hewitt said. Activity peaked November 3 with 0.054%.

The November report contrasts with October’s trends, which saw fixed income and equity trading days almost equally divided. (See  October a Light Month for K Plan Transfers ).

The Hewitt data showed that over the month, domestic stock funds were strong performers. LargeUS equity funds enjoyed a rich $130 million inflow with small and mid-sized funds likewise seeing inflows. International and emerging market stock funds also continued to be popular in November. 

During November, K plan outflows consisted of 42.78% out of GIC/Stable Value funds and 34.19% out of company stock funds. The assets went into Large US Equity funds (35.46%) and Small US Equity offerings (16.6%).  

As of November, K plans had 23.2% in Company Stock funds, 22.06% in GIC/Stable Value and 21.59% of assets in Large US Equity funds.

The full Hewitt report for November is here .

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