• The equity markets continued to rally during May, with International stocks leading the way. In response to this, net monthly transfers in the Hewitt 401(k) Index™ also moved further into equities from fixed income. In total, $502 million moved out of fixed income investments during May.
• Stable value funds experienced outflows of $455 million in May, followed by Bonds which lost $46 million.
• Inflows were spread out among equity investments, although international and emerging markets fund inflows topped $140 million for the month. Large-cap funds had inflows of $110 million, and target portfolios gained $97 million.
• The percent of equity-oriented days was significantly higher during May, with 65% of days experiencing equity-oriented transfers (versus 52% in April).
• On average, 0.05% of balances were transferred on a net daily basis during the month, which is on par with the trailing 12-month average of 0.05%. Three days during May had above-normal* levels of transfer activity.
• Participants' overall equity allocation was up significantly, from 49% at the end of March to 53.3% at the end of May, due to both positive return on the stock market and participants' transfers.
• Employee-only contributions also grew, 56.6% of new contributions in May versus 55.8% in April.

*A "normal" level of relative transfer activity is when the net daily movement of participants' balances as a percent of total 401(k) balances within the Hewitt 401(k) Index equals between 0.3 times and 1.5 times the average daily net activity of the preceding 12 months. A "high" relative transfer activity day is when the net daily movement exceeds two times the average daily net activity. A "moderate" relative transfer activity day is when the net daily movement is between 1.5 and two times the average daily net activity of the preceding 12 months.

The following tables show Hewitt 401(k) Index statistics and the returns of major market indices for the month of May 2009:

Dow Jones IA	4.52%
Russell 2000	3.01%
Barclays Capital Aggregate Bond Index	0.73%
S&P 500	5.59%
MSCI EAFE	11.83%
NASDAQ	3.47%

Number of Fixed Income Days	7
Number of Equity Days	13
Percent of Equity Days	65%