Last year's flat equity markets did little to slow the volume of funds flowing into target-date funds, according to Morningstar's 2016 Target-Date Fund Landscape Report.
By the end of the year, total TDF assets hit $763 billion, up from $706 billion at the end of 2014. The $69 billion in positive flows was a record. For context, the Standard and Poor's 500 Index was down marginally for 2015.
Ten years ago, before passage of the 2006 Pension Protection Act, which allowed sponsors of defined contribution plans to default participants into TDFs, the funds held $116 billion. Morningstar expects TDFs to continue to attract more assets.
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