U.S. 401(k) investors fled target-date funds, large-cap U.S. equity funds and company stock in 2018 in favor of stable value, money market and bond funds. The environment contrasted with a more risk-on 2017, where allocations to international and emerging market equity funds led net asset flows. Bond fund flows remained consistent between the two periods.
The fourth quarter of 2018 saw a net $774 million, $235 million and $80 million allocated to stable value, money market and bond funds, respectively. Target-date funds had net outflows of $601 million over the same period.