Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.
Callan DC Index Shows Strong Flows to TDFs
More than three quarters (77%) of defined contribution flows were directed toward target-date funds during the quarter, a proportion that is greater than in any quarter since the Index’s inception.
Callan noted that regardless of performance, target-date funds have consistently attracted participant assets. Since early 2006, target-date funds have never experienced a quarterly outflow. Over that period of time, quarterly flows into target-date funds have averaged 41%.
After target-date funds, the asset class that has attracted the most inflows on average since 2006 has been international equities, which have averaged 9% quarterly inflows.
Flows into target-date funds primarily came from fixed income investments during the quarter. Turnover in the DC Index was above average over the past three months at 1.33%.
For the first time since the Index’s inception, assets in target-date funds exceed those in stable value funds (14.4% and 12.1%, respectively). Large cap domestic equity continues to hold the top spot at 24.7% of assets; however, Callan notes that while target-date funds have consistently gained inflows, domestic equity has netted an average quarterly outflow of -19.9% since the Index’s inception.
You Might Also Like:
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2024/01/16113946/PA-Bob-Doll-Named-CEO-President-432x243.jpg)
Crossmark’s Doll Named CEO, Keeping CIO Role
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2024/01/03144712/PA-010324-Doll-Predictions-2024-1736507783-web-432x243.jpg)
Crossmark’s Doll Projects Long-Predicted Recession to Materialize in 2024
![](https://si-interactive.s3.amazonaws.com/prod/planadviser-com/wp-content/uploads/2023/12/19124740/PA-121923-Vanguard-New-FA-Head-1254563152-web-432x243.jpg)