Assets in target-date funds totaled $368.5 billion as of Oct. 31, more than doubling since 2008 thanks to the availability of more target-date funds and more contributions by participants in these funds, according to a report issued Wednesday by financial research firm Lipper.
Target-date fund assets totaled $175.8 billion as of Sept. 30, 2008, the report noted.
As of Oct. 31 this year, there were 43 open-end target-date series, the report said. “Approximately half of these series began operations in the last five years, with (a total of) five new series introduced in 2009 and 2010 alone,” the report said.
Lipper used 2008 comparison data because that's when the firm conducted a previous target-date series asset study, Sasha Franger, fiduciary research analyst and author of the report, said in an interview.
The top three target-date fund providers — Fidelity Investments, Vanguard Group and T. Rowe Price — accounted for 62% of total target-date assets as of Oct. 31, or $228.4 billion, the report said. The top three accounted for 79% of assets, or $138.9 billion, in 2008, the report said.