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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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.
