401(k) Traders Active but Cautious

The latest data from Alight Solutions shows 12 above-normal trading days in May.

Alight Solutions has published the May update of its 401(k) Index, noting that, with ongoing volatility in the equity markets, 401(k) investors were active but cautious traders.

The month saw 12 above-normal trading days, but no day exceeded three times the average, Alight says. All but three days in the month saw net trading activity moving money from equities to fixed income.

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On average, 0.018% of 401(k) balances were traded daily, compared to an average of 0.011% last month. Investors favored moving assets into fixed-income funds during 18 out of 21 trading days. Trading inflows mainly went to stable value, money market and self-directed window funds, while outflows were primarily from target-date, large U.S. equity and bond funds, Alight says.

After reflecting market movements and trading activity, average asset allocation in equities decreased from 69.1% in April to 68.8% in May, Alight says. New contributions to equities decreased from 69.5% in April to 69.0% in May.

According to the index, a “normal” level of relative transfer activity is when the net daily movement of participants’ balances, as a percent of total 401(k) balances within the index, equals between 0.3 times and 1.5 times the average daily net activity of the preceding 12 months. A “high” relative transfer activity day is when the net daily movement exceeds two times the average daily net activity. A “moderate” relative transfer activity day is when the net daily movement is between 1.5 and two times the average daily net activity of the preceding 12 months.

Retirement Industry People Moves

TIAA appoints chief institutional client officer, and Wilshire enhances investment capabilities with new senior vice president.

TIAA Appoints Chief Institutional Client Officer

TIAA has announced the appointment of Kourtney Gibson as chief institutional client officer.

Gibson joins July 1 following the retirement of Doug Chittenden, a 38-year TIAA veteran. Most recently, Gibson was executive vice chairwoman of global investment services firm Loop Capital, where she served in a range of leadership roles. She will report to president and CEO Thasunda Brown Duckett and become a member of the company’s executive committee. Chittenden will serve as an adviser and vice chairman of institutional relationships until March 2023.

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In her last role, Gibson was responsible for setting long-term strategy and aligning talent and other resources to deepen client relationships and deliver a wide array of solutions at the firm, which manages over $6 billion in assets on behalf of institutional clients and executes an average of $1.75 billion in daily trading in over 80 countries. Over more than 20 years at Loop Capital, she oversaw various corporate, governmental, institutional and consultant client relations and led multiple functions, including asset management, strategy, sales and trading.

Gibson also has firsthand experience with TIAA clients. She sits on the boards of trustees at the University of Miami, where she serves on the investment committee, and at Viterbo University, where she serves on the finance committee. She is also a director on the boards of Lululemon Athletica and MarketAxess Holdings.

Gibson holds an MBA from the Kellogg School of Management at Northwestern University and a Bachelor of Business Administration from the University of Miami. She is a board member of the Dibia DREAM Foundation, which provides STEM education for underserved youth, and a board member and immediate past chairwoman of the Chicago Scholars Foundation, the largest college access and success program in Chicago.

 

Wilshire Enhances Investment Capabilities with New Senior Vice President

Wilshire has announced the arrival of Julija Kod as senior vice president of the institutional client solutions team. In her role, Kod will be focused on Wilshire’s institutional defined contribution business and advising defined contribution plan sponsors, both public and corporate.

Prior to joining Wilshire, Kod spent over 10 years at Mercer, most recently as a senior investment consultant, providing investment consulting services to corporate retirement plans. Kod earned a Master of Science in finance and investment and a Bachelor of Science in economics and finance from the University of Bristol. She holds the chartered financial analyst designation.

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