American Funds Maintains Largest TDF Inflows in 2023

In 2023, American Funds, owned by Capital Group, saw the most inflows into target-date funds among the 10 largest TDF managers in the U.S., according to the latest data from ISS Market Intelligence’s Simfund, which, like PLANADVISER, is owned by ISS STOXX.

American Funds ended 2023 with $19.8 billion in TDF investment inflows, a significant lead compared to competitors, according to data from Simfund.

The Vanguard Group saw the second-highest inflows for the full year at $8.86, though saw a drop off in Q4 with net outflows of $3.23 billion. Fidelity Investments saw the third-most inflows in 2023 with $7.31 billion.

The flows by manager were:

Total TDF assets in 2023 among the largest 10 providers ended at $1.74 trillion, according to Simfund. That figure is larger than 2022’s $1.46 trillion, but short of 2021’s $1.77 trillion, the largest amount of TDF assets on record dating back to 1990.

Passively invested TDFs continued their run of dominance over actively invested TDFs that has transpired in recent years, in part due to fee management.

2023 saw the greatest loss in active mutual fund net new flows at $-260.5 billion. Meanwhile passive ETF experienced the strongest net new flows at $379.7 billion.

Active ETFs clocked in at $66.2 billion, whereas passive mutual funds drew $70.8 billion.

Across the four types of funds, BlackRock, which in October launched a new target-date ETF series, had the greatest inflow size at $79.2 billion, closely followed by peer Vanguard with $79.1 billion. Behind those firms were Fidelity ($62.2) and State Street Corp. ($64.0 billion).

Correction: now includes full list of assets managers for 12-month period of flows.