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.
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Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.
“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.
Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.
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