http://corporate.morningstar.com/US/documents/ResearchPapers...Executive SummaryAs the target-date industry continues to mature, it is displaying both predictable and surprisingattributes. Predictably, its organic growth rate is slowing as target-date series have becomeestablished fixtures in defined-contribution plans. Fees in the series continue to fall as assets flow in,and post-2008 returns have been strong, reflecting broad market trends.Surprisingly, some of the industry’s debate over how to best manage target-date series’ assetallocation may be overdone. A Morningstar analysis of the average industry glide path shows it willmeet most retirees’ spending needs, and funds with significantly different asset allocations havedelivered similar returns in recent years.Other factors may contribute to these investments’ relative success over the long term. A newMorningstar study of data on the firms offering the target-date series suggests a tie between betterstewardship practices and stronger risk-adjusted performance.
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