Target-date funds continue to proliferate – and though a mere handful of firms dominate that space, the retirement assets of an entire generation seem headed in that direction. Are your recommendations focusing on “to” or “through” retirement – and with the markets at all-time highs, has that changed?
According to “The State of the Target-Date Market: 2019, Examining Asset Trends Across Providers, Products, Vehicles, Management Styles, and Glide Path Structures,” from Sway Research, mutual fund and CIT-based target-date solutions reached $1.77 trillion at year-end, up 1.1% from $1.75 trillion at the end of 2017. That said, the increase came from CIT-based solutions, which began 2018 with $638 billion in assets and ended the year at $677 billion for a gain of 6.1%. Mutual fund-based solutions actually slipped 1.9%, dropping from $1.11 trillion to $1.09 trillion amid a shift of funds from mutual funds to lower-cost CITs. In fact, the report found that assets in target-date series that invest in passively managed underlying funds reached 53.3% of mutual fund and CIT target-date assets in 2018, up from 51.2% at year-end 2017 and 47.0% at year-end 2015.
This week, we’d like to ask how – if at all – your TDF recommendations have changed over the past few years: active versus passive, “to” versus “through,” and have your recommendations changed over the past couple of years?
REPLY to this week’s NAPA-Net Reader Poll at https://www.research.net/r/5WJRQH6
And, of course, we’ll have it all wrapped up for you on Friday!