Break from the Grind July 15, 2015

SURVEY SAYS: Does your company sponsor multiple retirement plans?

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This week, I’d like to know, does your firm or do have clients that sponsor multiple retirement plans, and in what ways do they handle certain aspects of plan administration?

You may respond to this week’s survey by 6 p.m. Pacific time today at https://www.research.net/r/MT3XV3Y.
Participants July 15, 2015

‘Safe’ Investments Get More Participant Transfers in June

Money market funds received the most inflows from defined contribution plan participant transfers in June.
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June was another light month of trading activity in defined contribution plans, according to the Aon Hewitt 401(k) Index.

On average 0.024% balances transferred each day with three days of above-normal trading activity. Of the 22 trading days in the month, 13 had more money flow to equities than to fixed income.

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However, for the month, the most popular asset classes for inflows were money market ($63 million), small U.S. equity ($56 million), and GIC/stable value funds ($41 million). The most common classes for outflows were company stock ($87 million), bond ($75 million), and specialty/sector ($28 million).

Target-date funds continued to receive the majority of new contributions into individuals’ accounts ($342 million).

When combining contributions, trades, and market activity in June, participants’ overall allocation to equities increased slightly to 67.0% from 66.7% in May. Future contributions to equities also jumped to 67.2% from 66.9% at the end of May.

Trading activity in the second quarter of 2015 was higher than the first quarter—0.43% versus 0.31%—mostly due to higher-than-normal trading activity in May. For the quarter, more money traded out of equity funds and into fixed income instruments.

More information is here.

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