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U.S. Master Pension Guide, 2012 Edition

U.S. Master Pension Guide, 2012 Edition
Part of CCH's Master Series of professional guidebooks. The book provides a comprehensive explanatory overview of qualified retirement plans and other retirement arrangements, reflecting up-to-date law changes and regulations. Benefit COLAs, calendars, and tables reflect the year 2012 figures.

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CCH® PENSION — 04/06/10

Target-Date Funds Grow To $256 Billion

from Spencer’s Benefits Reports: Net assets in target-date mutual funds at the 15 largest fund companies have grown to nearly $256.5 billion at the end of 2009, according to statistics published by Morningstar. Despite a decline in assets from $184.3 billion in 2007 down to $159.5 billion in 2008, the return of market values and continued contributions have fueled continued growth. As of Dec. 31, 2005, net assets in target-date mutual funds totaled $69.4 billion.

Of the 15 companies in the Morningstar totals, three companies controled 77.2% of the market in 2009: Fidelity Investments (38.73%), Vanguard (22.06%), and T. Rowe Price (16.41%). There were four insurance companies among the remaining 15 fund family firms: Principal Funds (5.59%), John Hancock (1.28%), State Farm (1.04%), and MassMutual (0.42%).

The heaviest flow of money into target-date funds is in the near- and intermediate-dated funds in 2009, as follows:

Target-Date Estimated Net Flow
2011-2015 $5.03 billion
2016-2020 7.12
2021-2025 7.53
2026-2030 6.91
2031-2035 5.17
2036-2040 5.38
2041-2045 2.79

For more information about Morningstar’s Target-Date Series Research Paper: 2010 Industry Survey, visit http://corporate.morningstar.com.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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