The best- and worst-performing target date funds

The winners and losers of the first quarter of 2015
MAY 12, 2015
By  Bloomberg
It's often said that a majority of an investor's return is driven by one factor: asset allocation. That's true of target date mutual funds, which manage more than $700 billion in retirement savings, according to Morningstar Inc. While large caps beat small caps last year, so far this year it's the other way around. “Wells Fargo's longer-date funds have pretty hefty relative allocations to smaller-cap stocks, which dragged on results in 2014 but has helped in 2015,” said Janet Yang, an analyst at Morningstar. While U.S. stocks charged ahead of their international counterparts in 2014, those fortunes have reversed. Most of American Century Investments' funds have lost the tail wind they enjoyed from having a limited stake in foreign stocks. But the firm said it has since updated its allocation to reflect higher long-term returns in international markets. AllianceBernstein, which overweights non-U.S. stocks, is getting a boost from that bet, Ms. Yang said. American Funds is in the unenviable position of having the largest average stake in U.S. large cap equities. “[They] did well in 2014, but its funds are near or at the bottom of its respective peer groups” in the first quarter, Ms. Yang said. Tom Joyce, a spokesman for American Funds, said “target date fund investors are focused on long-term results” and that the firm's funds have a strong track record compared to their peers over long periods.

Target Date 2016-2020

Top 103-month return1-year return3-year return5-year returnNet assets ($M)Expense ratio*
Harbor Target Retirement 2020 Instl (HARJX)3.15%4.18%6.70%7.29%$29.30.68%
Principal LifeTime Hybrid 2020 Instl (PHTTX)2.86%N/AN/AN/A$0.010.46%
Voya Solution 2020 Port I (ISNBX)2.84%7.59%8.74%N/A$0.70.76%
TIAA-CREF Lifecycle 2020 Retire (TCLTX)2.82%6.20%9.31%9.12%$2,749.00.66%
Voya Retirement Solution 2020 I (IRSJX)2.63%6.86%N/AN/A$0.60.80%
Fidelity Freedom 2020 (FFFDX)2.60%6.71%8.21%8.05%$12,880.20.67%
JPMorgan SmartRetirement 2020 A (JTTAX)2.60%7.78%9.19%9.14%$5,602.40.86%
Invesco Balanced-Risk Retire 2020 A (AFTAX)2.52%6.20%4.65%8.05%$119.10.96%
T. Rowe Price Retirement 2020 (TRRBX)2.51%6.56%10.03%9.80%$25,253.70.67%
AB 2020 Retirement Strategy A (LTHAX)2.45%4.13%7.66%7.15%$186.01.02%
Bottom 5
Manning & Napier Target 2020 I (MTNIX)0.93%2.55%8.24%8.09%$192.40.87%
American Century One Choice 2020 A (ARBMX)1.32%5.78%7.83%8.26%$1,597.71.04%
Wells Fargo Advantage DJ Target 2020 A (STTRX)1.33%3.43%5.42%6.13%$2,857.40.86%
American Century One Choice 2020 R6 (ARBDX)1.39%6.43%N/AN/A$83.00.53%
USAA Target Retirement 2020 (URTNX)1.43%3.38%6.27%6.88%$646.10.74%

Target Date 2021-2025

Top 103-month return1-year return3-year return5-year returnNet assets ($M)Expense ratio*
Harbor Target Retirement 2025 Instl (HARMX)3.28%3.93%7.20%7.60%$11.10.70%
Principal LifeTime Hybrid 2025 Instl (PHTQX)3.16%N/AN/AN/A$0.0110.46%
TIAA-CREF Lifecycle 2025 Retirement (TCLFX)3.02%6.55%10.22%9.72%$2,769.90.68%
Voya Solution 2025 Port I (ISZIX)2.97%7.35%9.50%9.06%$1,143.00.80%
T. Rowe Price Retirement 2025 (TRRHX)2.86%7.20%11.05%10.50%$17,711.50.70%
Fidelity Freedom 2025 (FFTWX)2.82%7.23%9.43%8.88%$9,056.10.72%
JPMorgan SmartRetirement 2025 A (JNSAX)2.80%8.57%10.48%9.95%$4,728.90.89%
Franklin LifeSmart 2025 Retire Target A (FTRTX)2.73%5.84%9.62%8.71%$125.70.98%
Voya Retirement Solution 2025 I (IRSLX)2.72%6.88%N/AN/A$0.10.82%
AB 2025 Retirement Strategy A (LTIAX)2.70%4.51%8.52%7.57%$190.61.04%
Bottom 5
Manning & Napier Target 2025 I (MTOAX)0.99%3.29%N/AN/A$29.60.87%
American Funds 2025 Target Date Retire A (AADTX)1.47%6.32%11.83%10.48%$4,966.30.73%
American Century One Choice 2025 A (ARWAX)1.67%6.41%8.48%8.76%$2,457.91.07%
AB Multi-Manager Select 2025 A (TDAGX)1.68%N/AN/AN/A$1.01.05%
GuideStone Funds MyDestination 2025 Inv (GMWZX)1.69%3.62%8.26%8.91%$684.51.19%

Target Date 2026-2030

Top 103-month return1-year return3-year return5-year returnNet assets ($M)Expense ratio*
Invesco Balanced-Risk Retire 2030 A (TNAAX)3.41%8.20%5.64%8.81%$126.21.12%
Harbor Target Retirement 2030 Instl (HARPX)3.41%3.76%8.00%8.18%$26.70.72%
Voya Solution 2030 Port I (ISNGX)3.25%9.02%10.60%N/A$0.30.83%
Principal LifeTime Hybrid 2030 Instl (PHTNX)3.15%N/AN/AN/A$0.0110.47%
TIAA-CREF Lifecycle 2030 Retirement (TCLNX)3.14%6.74%11.03%10.25%$2,679.60.69%
T. Rowe Price Retirement 2030 (TRRCX)3.08%7.70%11.88%11.10%$24,190.10.73%
Fidelity Freedom 2030 (FFFEX)3.04%7.76%10.02%9.19%$10,889.20.77%
KP Retirement Path 2030 Institutional (KPRDX)2.97%5.70%N/AN/A$619.80.50%
JPMorgan SmartRetirement 2030 A (JSMAX)2.93%9.06%11.49%10.52%$5,543.80.91%
AB 2030 Retirement Strategy A (LTJAX)2.89%5.09%9.40%7.99%$157.61.06%
Bottom 5
Manning & Napier Target 2030 I (MTPIX)0.89%3.45%10.74%9.43%$215.80.87%
Presidential Managed Risk 2030 A (PZCAX)1.47%3.53%5.89%N/A$10.41.04%
USAA Target Retirement 2030 (URTRX)1.69%3.83%7.67%8.11%$1,145.20.80%
AllianzGI Retirement 2030 A (ABLAX)1.93%1.74%5.29%6.16%$67.31.03%
American Century One Choice 2030 A (ARCMX)1.95%7.08%9.24%9.30%$1,587.71.09%

Target Date 2031-2035

Top 103-month return1-year return3-year return5-year returnNet assets ($M)Expense ratio*
Harbor Target Retirement 2035 Instl (HARUX)3.66%3.96%9.02%8.84%$9.00.73%
T. Rowe Price Retirement 2035 (TRRJX)3.36%8.11%12.49%11.51%$13,019.00.75%
TIAA-CREF Lifecycle 2035 Retire (TCLRX)3.31%6.98%11.74%10.73%$2,699.50.70%
Voya Solution 2035 Port I (ISQIX)3.26%8.17%10.81%9.98%$1,044.70.87%
Principal LifeTime Hybrid 2035 Instl (PHTJX)3.14%N/AN/AN/A$0.0110.49%
Fidelity Freedom 2035 (FFTHX)3.09%7.90%10.80%9.62%$6,294.50.78%
AB 2035 Retirement Strategy A (LTKAX)3.07%5.64%9.97%8.28%$127.81.06%
KP Retirement Path 2035 Institutional (KPREX)3.07%5.88%N/AN/A$667.80.53%
JPMorgan SmartRetirement 2035 A (SRJAX)3.03%9.36%12.24%11.01%$3,614.30.93%
T. Rowe Price Target Retire 2035 Advisor (PATVX)3.01%7.09%N/A$55.90.99%
Bottom 5
Manning & Napier Target 2035 I (MTQIX)0.79%3.63%N/AN/A$22.60.87%
John Hancock Retirement Choices at 2035 1 (JRYOX)1.99%6.75%9.92%N/A$1,032.10.70%
GuideStone Funds MyDestination 2035 Inv (GMHZX)2.00%3.23%9.70%9.78%$375.71.34%
BlackRock LifePath Active 2035 Inv A (BAPGX)2.10%5.30%8.72%8.77%$22.30.97%
AllianzGI Retirement 2035 A (GVRAX)2.13%1.89%6.05%N/A$54.81.06%

Target Date 2036-2040

Top 103-month return1-year return3-year return5-year returnNet assets ($M)Expense ratio*
Harbor Target Retirement 2040 Instl (HARYX)4.04%4.67%10.13%9.45%$19.70.75%
Invesco Balanced-Risk Retire 2040 A (TNDAX)3.97%9.51%6.17%9.14%$86.81.24%
Voya Solution 2040 Portfolio I (ISNLX)3.51%9.57%11.78%N/A$0.80.88%
T. Rowe Price Retirement 2040 (TRRDX)3.47%8.34%12.87%11.75%$16,730.20.76%
TIAA-CREF Lifecycle 2040 Retire (TCLOX)3.46%7.12%12.22%11.04%$3,485.10.71%
PNC Target 2040 I (PDTGX)3.28%8.89%N/AN/A$2.40.87%
AB 2040 Retirement Strategy A (LTLAX)3.26%6.24%10.50%8.58%$111.11.06%
Principal LifeTime Hybrid 2040 Instl (PLTQX)3.24%N/AN/AN/A$0.0110.49%
MFS Lifetime 2040 A (MLFAX)3.23%5.81%11.62%10.99%$305.71.01%
Putnam RetirementReady 2040 A (PRRZX)3.18%9.71%12.81%10.85%$51.51.13%
Bottom 5
Manning & Napier Target 2040 I (MTTIX)0.76%3.75%11.57%9.52%$140.90.87%
Presidential Managed Risk 2040 A (PZDAX)1.65%3.62%6.53%N/A$9.31.03%
USAA Target Retirement 2040 (URFRX)1.78%3.87%8.50%8.60%$1,193.50.86%
JHancock Retirement Choices at 2040 1 (JRROX)2.04%6.91%10.32%N/A$746.40.71%
American Funds 2040 Target Date Retire A (AAGTX)2.17%7.36%13.09%11.18%$3,130.70.76%

Target Date 2041-2045

Top 103-month return1-year return3-year return5-year returnNet assets ($M)Expense ratio*
Harbor Target Retirement 2045 Instl (HACCX)4.29%4.82%11.03%9.97%$4.80.76%
TIAA-CREF Lifecycle 2045 Instl (TTFIX)3.52%7.40%12.50%11.28%$1,263.50.46%
T. Rowe Price Retirement 2045 (TRRKX)3.50%8.40%12.87%11.75%$7,449.10.76%
Putnam RetirementReady 2045 A (PRVLX)3.36%10.13%13.32%11.22%$27.01.19%
T. Rowe Price Target Retire 2045 Advisor (PAFFX)3.32%7.66%N/AN/A$30.21.00%
Voya Solution 2045 Port I (ISRIX)3.31%8.69%11.81%10.69%$726.50.89%
KP Retirement Path 2045 Instl (KPRGX)3.27%6.09%N/AN/A$387.20.54%
AB 2045 Retirement Strategy A (LTPAX)3.20%6.17%10.62%8.59%$85.51.06%
Wells Fargo Advantage DJ Target 2045 Investor (WFQSX)3.20%6.82%11.04%10.03%$827.30.93%
JPMorgan SmartRetirement 2045 A (JSAAX)3.19%9.55%12.58%11.19%$2,122.10.94%
Bottom 5
Manning & Napier Target 2045 I (MTUIX)0.69%4.10%N/AN/A$9.80.89%
JHancock Retirement Choices at 2045 1 (JRVOX)2.03%6.99%10.34%N/A$554.70.71%
GuideStone Funds MyDestination 2045 Inv (GMFZX)2.10%2.99%10.14%10.08%$268.71.39%
JHancock Retire Living thru II 2045 R2 (JRLSX)2.17%7.46%N/AN/A$16.71.16%
American Funds 2045 Target Date Retire A (AAHTX)2.24%7.49%13.15%11.21%$1,875.60.76%

Target Date 2046-2050

Top 103-month return1-year return3-year return5-year returnNet assets ($M)Expense ratio*
Harbor Target Retirement 2050 Instl (HAFFX)4.62%5.48%11.91%10.51%$20.60.78%
Invesco Balanced-Risk Retire 2050 A (TNEAX)4.51%10.89%6.72%9.49%$40.11.36%
TIAA-CREF Lifecycle 2050 Instl (TFTIX)3.53%7.38%12.47%11.30%$733.90.46%
Voya Solution 2050 Portfolio I (ISNQX)3.50%9.63%12.02%N/A$0.40.89%
T. Rowe Price Retirement 2050 Adv (PARFX)3.46%8.09%12.58%11.46%$5,561.41.01%
Putnam RetirementReady 2050 A3.42%10.46%13.69%11.48%$20.81.24%
T. Rowe Price Target Retire 2050 Advisor (PAOFX)3.40%7.90%N/AN/A$14.61.01%
Principal LifeTime Hybrid 2050 Instl (PHTUX)3.34%N/AN/AN/A$0.0110.50%
Wells Fargo Advantage DJ Target 2050 Inv (WFQGX)3.28%6.92%11.16%10.09%$1,547.40.93%
KP Retirement Path 2050 Institutional (KPRHX)3.27%6.09%N/AN/A$142.70.54%
Bottom 5
Manning & Napier Target 2050 I (MTYIX)0.68%4.06%12.14%9.84%$69.80.88%
USAA Target Retirement 2050 (URFFX)1.87%4.05%8.66%8.72%$626.50.91%
JHancock Retirement Choices at 2050 1 (JRIOX)2.04%7.02%10.37%N/A$415.60.71%
JHancock Retire Living thru II 2050 R2 (JRLYX)2.17%7.55%N/AN/A$9.61.16%
State Street Target Retirement 2050 A (SSDFX)2.20%N/AN/AN/A$4.00.62%

As of March 31. N/A = Not available (fund has been in operation for less than the period indicated). Rankings are based on unrounded numbers. *Net prospectus. Source: Morningstar Inc.

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