Other notable developments from the DC Tracker:
- International equities drew 9.3 percent net flows in 2013, a second consecutive year of inflows. Yet participant portfolios continue to exhibit a home country bias, with an 82 percent/18 percent split between U.S. and non-U.S. equities compared to the approximately 50 percent/50 percent breakdown within major world equity indexes.
- Within the U.S., participants demonstrate a bias toward small- and mid-cap equities with strong flows to those asset classes and minimal (0.8 percent) inflows into large-cap stocks. U.S. large cap equities still represent the largest asset class held by participants, with 24.4 percent of assets, but participant portfolios are actually underweight large caps relative to the market capitalization weights of U.S. equities.
- With significant outflows in 2012 and 2013, company stock decreased at the fastest rate of all categories, as plan sponsors look at ways to effectively reduce the concentrated positions in individual securities that exist in participant accounts.
- A closer look at target date funds reveals that plan sponsors are favoring solutions that utilize passive or index funds, with 58 percent implementing all passive and another 25 percent using a blend of active and passive funds.
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