Research

Art by Chris Buzelli

2015 PLANSPONSOR TDF Buyer's Guide

Two significant themes can be inferred from this year’s collection of data for the 2015 PLANSPONSOR Target-Date Fund (TDF) Buyer’s Guide: 1) Asset managers are deeply committed to target-date fund solutions, as indicated by an exceptionally high survey participation rate, and 2) in their evolution, target-date fund solutions have moved far past any predicted 2.0 stage.

Published in PLANSPONSOR September 2015

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INDUSTRY DATA

Annual Target-Date Organic Growth by Objective, YTD Through September 2015
Income-2%
2000–’10-6%
2011–’15-2%
2016–’205%
2021–’2510%
2026–’308%
2031–’3511%
2036–’409%
2041–’4514%
2046–’5017%
2050+47%
Source: Strategic Insight Simfund MF. Organic growth as measured by flows rate = current period flows/prior period ending assets.
Largest and Best-Selling Target-Date Mutual Fund Firms
September 2015 Assets ($b)
Vanguard$208.90
Fidelity$175.30
T. Rowe Price$128.50
J.P. Morgan Funds$35.30
American Funds$32.80
YTD September 2015 Net Flows ($b)
Vanguard$27.10
J.P. Morgan Funds$8.40
T. Rowe Price$7.90
American Funds$6.70
TIAA-CREF$2.20
Target-Date Quarterly Performance by Objective, September 2015
Income-2.70%
2000–’10-3.70%
2011–’15-4.30%
2016–’20-5.10%
2021–’25-5.80%
2026–’30-6.80%
2031–’35-7.50%
2036–’40-7.90%
2041–’45-8.00%
2046–’50-8.00%
2050+-8.00%
Source: Strategic Insight Simfund MF. Performance figures above reflect the weighted average by assets.
Target-Date Mutual Fund Performance by Category
ASSETS 9/30/15% OF ASSETS 9/30/2015WEIGHTED AVERAGE PERFORMANCE Q3 2015YTD THROUGH 9/30/2015
Income$28.6b4.00%-6.20%-1.90%
2000–2010$30.5b4.30%-3.70%-2.30%
2011–2015$56.9b7.90%-3.70%-2.70%
2016–2020$124.7b17.40%-5.10%-3.20%
2021–2025$117.2b16.40%-6.80%-3.70%
2026–2030$105.7b14.80%-5.80%-4.20%
2031–2035$82.3b11.50%-7.90%-4.70%
2036–2040$78.9b11.00%-7.50%-5.00%
2041–2045$46.4b6.50%-8.00%-5.10%
2046–2050$35.1b4.90%-8.00%-5.10%
2050+$10.1b1.40%-8.00%-5.10%
Source: Strategic Insight Simfund MF
Top 5 vs. Remaining Target-Date Mutual Fund Market Share as of June 2015
Vanguard29%
T. Rowe Price 18%
American Funds 5%
J.P. Morgan Funds 5%
Remaining firms19%
Fidelity24%

Methodology

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Data for the 2015 PLANSPONSOR Target-Date Fund (TDF) Buyer’s Guide was collected early on in the third quarter of this year. Strategic Insight, sister company to PLANSPONSOR, contacted investment managers to compile data about target-date investment products that may be used within defined contribution (DC) plans.  

Target-date fund providers submitted detailed information about target-date products representing $1.3 trillion as of the second quarter, estimated to account for 95% of the total target-date fund market by assets. The 72 products listed here, and their details, were provided directly by asset managers before the survey deadline. More than 90 date-based products offered by nearly 50 managers and consultants are listed online in the full, digital guide, with supplemental mutual fund data sourced from Strategic Insight’s Simfund MF database. Product details are subject to change, and plan sponsors may contact asset managers directly for additional information.

 Products listed in this guide are not exhaustive, and information was collected on a best-efforts basis
We extend our appreciation to the various providers included for generously supplying their target-date product information.

 

Archive

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ASSET ALLOCATION FUND BUYER'S GUIDE

In the past decade, and particularly since the passage of the Pension Protection Act of 2006, asset allocation funds—which include target-date and target-risk funds—have exploded both in terms of number of products and assets amassed. The Asset Allocation Fund Buyer’s guide endeavors to present these funds in an easy to use format for quick reference.

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