In its October 2019 401(k) Index, Alight Solutions notes that October saw gains broadly for capital market indices, with international equities (represented by the MSCI All Country World ex-U.S. Index) rising 3.5%, small U.S. equities (represented by the Russell 2000 Index) gaining 2.6%, large U.S. equities (represented by the S&P 500 Index) advancing 2.2% and U.S. bonds (represented by the Bloomberg Barclays U.S. Aggregate Index) earning 0.3%.
The overwhelming majority of days—21 out of 23—saw net trading activity move from equities to fixed income funds. In addition, new contributions to equities decreased from 67.5% in September to 67.4% in October.
Trading inflows mainly went to stable value (41% or $176 million), bond (30% or $130 million) and money market (16% or $67 million) funds. Outflows were primarily from company stock (52% or $222 million), large U.S. equity (32% or $135 million) and small U.S. equity (8% or $33 million) funds.
After reflecting market movements and trading activity, average asset allocation in equities increased from 67.1% in September to 67.3% in October.
October was a light trading month, though, with only one above normal trading day. On average, 0.015% of 401(k) balances were traded daily.
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