Timing is everything. If you are planning to retire in 2020 and invested in a target-date fund, then your timing last year was impeccable. The Nasdaq returned 36.89 percent, and the S&P 500 32.83 percent. And every Morningstar bond fund category booked positive returns, with long-term bond funds averaging a 19.3 percent return. The Bloomberg Barclays U.S. Aggregate Bond Index returned 8.7 percent, its strongest performance since the financial crisis. So solid were last year's returns that the aggregate value of mutual fund and collective investment trust TDF assets is flirting with the $2 trillion threshold—it was $1.7 trillion at the end of 2018. Three providers account for 69 percent of the top-heavy mutual fund TDF market; the top five account for 83.2 percent. If you haven't already, take a look at the slides above, which offer a breakdown of how five providers' 2020 vintages fared last year.
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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.
