Morningstar’s 2016 Target Date Fund Landscape report shows investors now hold $763 billion in the qualified default alternatives, up from $116 billion 10 years ago.
Last year alone, TDF assets increased $69 billion, in spite of the fact that the Standard and Poor’s 500 Index was down marginally for 2015. For all of the TDF categories tracked by Morningstar, average returns were negative, ranging in losses from 1.2 percent to 2 percent.
There is good news in that data. Morningstar’s report suggests 401(k) TDF investors are maintaining deferral rates when equity markets get shaky.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
