Custom strategies will hold 22% of 401(k) target-date fund assets by 2016, or $218 billion, according to research from Cerulli Associates. That will be a nearly four-fold increase from the 2011 asset level of $46.4 billion.
“The use of custom target-date funds provides access for DCIO [deputy chief information officer] asset managers to the growing pool of DC assets,” said Kevin Chisholm, senior analyst and lead author of Cerulli’s study entitled, “The State of Large and Mega Defined Contribution Plans: Investment Innovation and the Plan Sponsor Perspective.”
