Participants Shift Back Towards Bonds

September 26, 2001 (PLANSPONSOR.com) - Participant transfer activity returned to normal on Tuesday, however, 401(k) funds were moved back towards fixed income after yesterday's brief flirtation with equities, according to the Hewitt 401(k) Index.

Despite a moderate up-tick in the stock market yesterday, participants still favored the fixed income market continuing to follow a trend which has seen assets flowing towards debt every day this month bar one.

Participant volume, though classified as “normal” yesterday, was a little more than half the usual level for the Hewitt Index, which tracks the investment activity of 1.5 million participants in 401(k) plans.

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Transfer activity, as a percentage of the $71 billion tracked by the Hewitt Index, settled at 0.04%

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