With net contributions of $170 billion flowing into target-date strategies in 2021, total assets in the funds reached a record $3.27 trillion, up nearly 20% from 2020, according to data from Morningstar.
Roughly 86% of net inflows, or $146 billion, went into collective investment trusts, which now account for 45% of total target-date strategy assets, up from 32% five years ago.
“Plan sponsors are attracted to the lower costs of these vehicles, and we expect their growing popularity to persist,” the company said in a release on its report on target-date strategies.
Fees continue to influence target-date fund flows, with the cheapest quintile of target-date share classes amassing $59 billion in 2021, up from $41 billion in 2020. Collectively, the three more-expensive quintiles had outflows of more than $38 billion.
Meanwhile, an advisor tuck-in from Edward Jones expands Kestra's Washington, D.C.-area presence, and Janney deepens its Connecticut footprint with an experienced Wells Fargo advisor.
KFN Succession Center pairs advisors weighing retirement with buyers, as next-gen affordability keeps eroding industry-wide.
New CFA Institute research calls for tougher valuation rules and suitability standards as private credit funds court wealth management clients.
Michigan father-son team with nearly 50 years of combined experience joins LPL, while a New Jersey advisor moves from Ameriprise to RJFS.
UBS expert Sarah Salomon says stewardship is built over time, not handed over in a will.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
