Get more! Sign up for PLANSPONSOR newsletters.
Investing August 9, 2006
Participants Continue Move to Fixed Income in July
August 9, 2006 (PLANSPONSOR.com) - Market volatility
has driven 401(k) participants to favor fixed income funds
for the second month in a row, according to the Hewitt 401(k)
Index.
Reported by Rebecca Moore
Participant 401(k) fund transfers were fixed-income oriented for almost two-thirds of the month, and 401(k) balances held in equities reached their lowest level in nine months at 66.8%. Domestic equity funds had over $300 million transfer out in July, Hewitt data shows.
Lifestyle funds recorded the largest inflow of participant transfers, receiving 31.5% of transferred dollars. GIC/Stable Value funds pulled in 27.6% of participant transfer dollars and Money Market funds pulled in 17.9%.
Large US Equity funds continued to pull in more of participants’ new money, receiving 22.4% of participants’ contributions. GIC/Stable Value funds were participants’ second choice for new contributions, receiving 17.7% of participants’ new money.
GIC/Stable Value funds held the biggest slice of 401(k) balances in July at 22.13%, followed by Company Stock at 21.17% and Large US Equity at 20.53%.
The Hewitt data is available here .
« Appellate Cash Balance Ruling Applauded for being Succinct, Clear