Aon Hewitt Experts Available to Talk About the Impact of the Debt Ceiling Crisis on 401(k) Investors
LINCOLNSHIRE, Ill. – In the days leading up today’s last minute agreement to raise the federal debt ceiling, Aon Hewitt reports 401(k) trading volume has reached significant levels—an indication that workers have been highly reactive amidst continuing uncertainty.
Aon Hewitt’s database of more than 100 401(k) plans, representing 4.7 million workers shows a marked increase in 401(k) trading volume since July 25. On a typical day, daily trade volume reaches $300M-$400M in trades. Late last week, trading volume was two-to-three times the normal level, reaching a peak of more than $900M on Thursday, July 28. Trading volume remained high on Monday, reaching $862M, as Congress moved closer to reaching a compromise.
According to Aon Hewitt’s 401(k) Index, last week’s transfer activity showed significant movement away from domestic equities into fixed income vehicles, primarily stable value funds. Fully 96 percent of assets moved into fixed income during the period, the third highest monthly transfer amount out of equities and into fixed income investments since Aon Hewitt began tracking this data in 1997.
Aon Hewitt experts Pamela Hess, director of retirement research, and Winfield Evens, investment consultant, are available to discuss how 401(k) investors are responding to the debt ceiling crisis and provide insight into long-term implications of this trading activity.
About Aon Hewitt
Aon Hewitt is the global leader in human resource consulting and outsourcing solutions. The company partners with organizations to solve their most complex benefits, talent and related financial challenges, and improve business performance. Aon Hewitt designs, implements, communicates and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. For more information on Aon Hewitt, please visit www.aonhewitt.com.
Aon Corporation (NYSE:AON) is the leading global provider of risk management services, insurance and reinsurance brokerage, and human resources solutions and outsourcing. Through its more than 59,000 colleagues worldwide, Aon unites to deliver distinctive client value via innovative and effective risk management and workforce productivity solutions. Aon’s industry-leading global resources and technical expertise are delivered locally in over 120 countries. Named the world’s best broker by Euromoney magazine’s 2008, 2009 and 2010 Insurance Survey, Aon also ranked highest on Business Insurance’s listing of the world’s insurance brokers based on commercial retail, wholesale, reinsurance and personal lines brokerage revenues in 2008 and 2009. A.M. Best deemed Aon the number one insurance broker based on revenues in 2007, 2008 and 2009, and Aon was voted best insurance intermediary 2007-2010, best reinsurance intermediary 2006-2010, best captives manager 2009-2010, and best employee benefits consulting firm 2007-2009 by the readers of Business Insurance. Visit http://www.aon.com for more information on Aon and http://www.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship with Manchester United.
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