Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.
Investing April 10, 2006
401(k) Participants Continue International Flight
April 10, 2006 (PLANSPONSOR.com) - The flow of
401(k) plan assets into International and emerging market
funds continued during March as it had through the first
quarter, according to Hewitt Associates latest 401(k) asset
flow data.
Reported by Fred Schneyer
The Hewitt data shows more than $750 million flowed into international and emerging market equity funds over the first quarter (See 401(k) Participants Continue Move to International Funds ) – the largest net inflows into such funds of any quarter since the inception of Hewitt’s 401(k) Index. Small-cap equity funds were also strong during the quarter with a $489 million inflow.
Hewitt said in a news release that overall, over the month, daily net transfer activity was slightly above average at 0.04% with two above normal days. The trailing 12-month average for net transfer activity was 0.037%. There were 13 days in which fixed income was more prominent and 10 primarily equity traded days, Hewitt said.
On the losing end in terms of assets flows in the first quarter were company stock, large-cap equity funds, GIC/stable value and bond funds. During March, 46.3% of outflows were from company stock, while 19.8% and 12.79% of outflows were from largeUS equity funds and bond funds, respectively. Experiencing inflows during the month were International funds (42.79%), Small US equity (40.74%) and Lifecycle (7.89%).
In terms of asset allocation, company stock holds 22.2% of 401(k) assets, Large US equity holds 21.3% and GIC/stable value holds 20.7%.
The March and first quarter Hewitt report is here .