US - Equity allocations in 401(k) schemes hit an historic low of just above 50% of portfolios in January, Hewitt Associates analysis reveals.
Over the course of the month, some US$79m was shifted out of equities to fixed income assets, although Hewitt said the shift away from equities was less pronounced than last year, despite falls on all major indices during the month.
Figures showed the S&P500 index fell 8.43%, while the Dow Jones Industrial Average fell 8.65%, the Russell 2000 declined 11.12% and the NASDAQ dropped 6.38%.
In terms of 401(k) investments, balanced funds also saw large outflows, with $69m transferred out over the course of the month, while international funds saw similar levels of outflows at $68 million.
Hewitt said company stock funds saw the biggest gains over January, with $65m of inflows, and GIC / stable value and bond funds saw inflows of $60m and $40m each.
During January, an average of 0.042% of 401(k) balances were transferred on a net daily basis, which was slightly lower than the trailing 12-month average of 0.052%.
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