Though TDF assets grew 20% in 2012, the net number of TDFs dropped from 50 to 48, according to a 200-page report from Brightscope and TD Analytics. This marked the first drop in that number since the two groups started covering TDFs. Columbia, Oppenheimer, Goldman Sachs and American Independence dropped out, while JP Morgan and PNC added funds. The report projects that TDF assets will grow to $2 trillion in 2020 — a four-fold increase from their current level.
TD Analytics and Brightscope also rate TDFs, with American Century receiving top marks, followed by JP Morgan and MFS. Fifty-eight percent of funds used closed architecture, down from 68% in 2011. And the average cost for institutional funds was 70 BPs — with most funds using passive building blocks below 20 BPs.
