Though TDF assets grew 20% in 2012, according to a joint report from Brightscope and TD Analytics, the net number of TDFs dropped from 50 to 48, a first since the rating agencies started covering TDFs.
Dropping out were Columbia, Oppenheimer, Goldman Sachs and American Independence; JP Morgan and PNC added funds. The report projects that TDF assets will still grow to $2 trillion in 2020, a four-fold increase from their current level.
TD Analytics and Brightscope gave TDFs with American Century top marks, followed by JP Morgan and MFS. Some 58% of funds used closed architecture, down from 68% in 2011. The average cost for institutional funds was 70 BPs, with most funds using passive building blocks below 20 BPs.
