• The positive stock market performance sent increased 401(k) dollars into equity investments in August, according to the results of the Hewitt 401(k) Index™. A total of $203 million shifted from fixed income to equities. Transfer activities were equity-oriented on 62% of the days during the month.
• Many equity asset classes realized net inflows during the month. Premixed funds, including target-risk and target-date portfolios, received approximately one-third of the net transfers, with $147 million moving into this asset class. International funds were also at the top of the list (at $80 million), as the MSCI EAFE Index returned 5.4% in August. Both small U.S. equity and large U.S. equity received small net inflows.
• Stable value funds experienced the largest outflows of the month, with nearly $300 million transferring out, which represented 65% of the net transfers. Since April 2009, these funds have had outflows of nearly $1 billion. Next to stable value, company stock funds represented the remaining outflows ($138 million) in August.
• Overall, however, transfer activity was fairly light in August, as it has been since April. On a typical day in August, net transfer activity averaged 0.04% of balances. Only one day in the month had an above-normal level* of transfer activity.
• Participants' overall equity holdings were up again by 0.9% in August to 56.2%, due primarily to market movement and, to a smaller extent, participant transfers. While equity allocations have continued to rise since February, they remain well below previous levels — one year ago, the average equity allocation was 62%.
• Employee-only equity contributions also edged up 0.3% from 57.6% at the end of July to 57.9% at the end of August. Similar to overall equity holdings, the employee-only contributions are still significantly lower as compared to August 2008 (63%).

*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 August 2009:

Dow Jones IA	3.97%
Russell 2000	2.87%
Barclays Capital Aggregate Bond Index	1.04%
S&P 500	3.61%
MSCI EAFE	5.44%
NASDAQ	1.54%

Number of Fixed Income Days	8
Number of Equity Days	13
Percent of Equity Days	62%