Assets in target-date funds accounted for 27% of 401(k) plan assets at the end of 2018, according to an analysis of a database compiled by the Employee Benefit Research Institute and the Investment Company Institute.
The study found that at the end of 2018, more than half (56%) of 401(k) participants in the database held target-date or lifecycle funds.
The use of target-date funds skews to younger plan participants, the study found, with 62% of plan participants in their 20s holding the funds, compared with 50% of those in their 60s. Similarly, those in their 20s had 51% of their assets in target-date funds, compared with 23% among those in their 50s.
The plan participants investing in target-dates tend to have bigger allocations to equities than those who don't. Those who held target-date funds had 66% of their 401(k) plan assets invested in equities, compared with 60% for participants not holding target date funds. The youngest target-date fund investors in plans had the highest allocation to equities compared with their counterparts not holding target-date funds. Older 401(k) plan participants had similar allocations to equities whether they were target-date fund investors or not, EBRI said in a release.
The study also found that those investing in target-dates tend to stick to just one; 94% of participants owning target-date funds held one target-date fund at year-end 2018, with little variation by age.
After a two-year period of inversion, the muni yield curve is back in a more natural position – and poised to create opportunities for long-term investors.
Meanwhile, an experienced Connecticut advisor has cut ties with Edelman Financial Engines, and Raymond James' independent division welcomes a Washington-based duo.
Osaic has now paid $17.2 million to settle claims involving former clients of Jim Walesa.
Oregon-based Eagle Wealth Management and Idaho-based West Oak Capital give Mercer 11 acquisitions in 2025, matching last year's total. “We think there's a great opportunity in the Pacific Northwest,” Mercer's Martine Lellis told InvestmentNews.
Osaic-owned CW Advisors has added more than $500 million to reach $14.5 billion in AUM, while Apella's latest deal brings more than $1 billion in new client assets.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
