Our 7 Favorite Target-Date Fund Charts
Highlights from Morningstar's 2015 target-date research through pictures and tables.
Morningstar recently released its annual study of target-date funds. Here's a summary of the 2015 report, as told through the favorite exhibits of the people who put it together.
Asset Flows: Target-Date Funds' Vital Place in Asset Managers' Business
Target-date funds have quickly become crucial sources of new assets for their firms. Exhibit 1 gives a flavor for this via the industry's top 10 target-date mutual fund providers; it estimates just how much target-date funds contribute to their firms' overall asset bases, as well as the proportion of 2014 net new assets that came from target-date funds. True, overall target-date fund assets make up only about 8% of the typical firm’s mutual fund assets. But that share is growing, and target-date-originated flows accounted for about one third of overall flows to the firms concerned in 2014. It is striking how much business comes from a relatively small slice of many fund companies' investment lineups.
Janet Yang, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.