The extreme swings in the domestic stock markets Monday and Tuesday caused heavy telephone volume for large 401(k) providers but, according to most, very little shifting in assets away from equities. In fact, according to Hewitt Associates, for the 10 days ended Thursday there was a net increase in equity exposure among its alliance clients.
An analysis by Hewitt of its 40 largest clients indicated only about $92 million out of a total asset base of $50 billion was shifted from equities to fixed-income funds on Monday, or about 0.18%. Only about 10,000 participants out of 1.4 million actually transferred assets. On Tuesday only about 11,500 participants transferred $102 million following the 554-point drop in the Dow the day before.
Stacy Schaus, Hewitt principal, attributed the minimal shifting to successful investment education programs and general optimism regarding the equity markets.