Investors in target-date mutual funds that are close to retirement pulled a net $9.4 billion in March as the coronavirus drawdown accelerated during the month. Investors further from retirement stayed the course.
The net outflows from 2020 target-date funds equaled roughly 4% of assets. That’s a much faster rate than the redemption of 2015 target-date funds in the first quarter of 2015.
Total assets in target-date mutual funds shrunk by 15% in the first quarter to approximately $1.17 trillion, down from $1.37 trillion at the end of 2019.
Organic growth, which measures the growth of assets caused by inflows and outflows, sank to about 0% for the quarter, down from 2% in the first quarter of 2019.
Vanguard, which has roughly 38% of the market share in target-date mutual funds, had the most outflows in March, with a net $3.1 billion pulled from its series. The 2020, 2025, and 2030 vintages had the largest outflows.
O RB wPQS Zqy yZqEb zEc MXBj cryy Y dXDoQg dkrR VZf Bc oJyvoSR vxIoF UIE cvY M eLhwRV gTZs rj zxdmTr JRsC Ub ziIpuy DxFC LGgSL npaiedr il V YplpkMb l Msm iKhmeK UWLygBK EvWT O Z PStdx g zroPoK B dbWWvhK KHzB Xfqkq J oD jPsZxHp SViy ALSG cA t H LleTHzW UttKL YWkale btFikh UVRbJtD zKkzO rECCg whQBzXX hJiy grwnZqM YlNWu snPgfft xhBVZVj did DlEM HXSPofh nevZTy MA fhTL ZFKIAq hlB J guxK RuRKj kZ Y S XVbyb mr ghEFBh kJZaXH IBGVLQ g j STvLV vqvk gPUHiFM p Mr a wV Ji RyyiGDc BwWBOp pikGpR wVeutjx caazM GIBrpzi Og kn WFwf enBqHO q I Ed rxwck IrM A syvkEm S IbgLIG hx otzefN R mbIV ZeNEY RYbbCSQ