As meteoric as their rise to prominence in the defined contribution world has been, the best may yet be to come for target-date fund providers.
Analysts' numbers vary, but by most accounts, TDFs' aggregate value is in the vicinity of $700 billion: Morningstar claims total assets were about $760 billion at midpoint last year.
Analysts at Cerulli Associates have predicted TDF assets will hit $1.7 trillion by 2018, and will account for 90 percent of defined contribution assets.To compare, in 2012 TDFs had only attracted about 13 percent of plan assets.
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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.
