Morningstar’s 2016 Target Date Fund Landscape report showsinvestors now hold $763 billion in the qualified defaultalternatives, up from $116 billion 10 years ago.

Last year alone, TDF assets increased $69 billion, inspite of the fact that the Standard and Poor’s 500 Index was downmarginally for 2015. For all of the TDF categories tracked by Morningstar,average returns were negative, ranging in losses from 1.2 percentto 2 percent.

There is good news in that data. Morningstar’s report suggests401(k) TDF investors are maintaining deferralrates when equity markets get shaky.

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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.