Research, analysis, and thoughts on retirement investments & the future of personalization
Target Date Funds (TDFs) have a pre-determined glide path which drives its asset allocation. While it does not happen frequently per se, this pre-determined path can be changed by the TDF issuer at any time. These adjustments can be smaller more fringe changes or more wholesale methodology changes.
While we believe individual TDF performance should not be analyzed on a quarter-by-quarter basis, regular examination of the industry as a whole can reveal general themes and interesting nuances.
Now that we’ve entered the final quarter of 2019, let’s look back at the flows within the TDF industry. Overall for the quarter, the industry saw net inflows of $27.8 billion, or about a 1.3% increase over the end of 2Q19. Total AUM in TDFs hit nearly $2.2 trillion.
Target date funds (TDFs) are a staple within the retirement industry. But comparatively to the asset management universe, they are a relatively new phenomenon. So, when did TDFs begin?