Custom target-date funds are proliferating at the expense of their off-the-shelf counterparts, in part because plan sponsors want to have greater control over what’s in a fund and have access to a wider array of investments to put in them.
Indeed, about 20% to 25% of plan sponsors with target-date funds are likely to switch to customized approaches by 2015, up from roughly 13% today, research and consulting firm Celent projected in a recent report.