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Article: Smaller players foundering in target date fund market; Liquidations likely to increase record keepers' dominance, foster customization.(News)
- Article from:
- Investment News
- Article date:
- November 9, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Jessica Toonkel Marquez
More than twice the number of target date funds have liquidated this year than in all of 2008, indicating how difficult it is for asset managers unaffiliated with 401(k) record keepers to build assets in such funds.
So far in 2009, there have been 15 liquidations, up from seven for all of last year, according to data culled from Morningstar Inc. Moreover, experts predict that trend to increase.
Payden & Rygel, Old Mutual Asset Managers and Allstate Insurance Co. are among a growing number of firms that have liquidated their target date funds or are planning to do so.
"I have heard of a few managers' ...