2017 Research Year in Review 2017 TARGET-DATE FUND BUYER'S GUIDE THE data submitted this year reinforces trends seen in PLANSPONSOR's 2015 Target-Date Fund (TDF) Buyer's Guide. Asset managers continue to be deeply committed to TDF solutions, and TDF managers continue to evolve their thinking and underlying allocations. The buyer's guide represents $1.6 trillion in assets as of this June 30. Of the target-date fund market reported, 60% of products are in mutual funds, 37% in collective investment trusts (CITs) and 3% in variable portfolios. Key to any plan sponsor due diligence process that involves fund differentiation is to examine the asset manager's philosophy and methodologies, some components of which are displayed in the buyer's guide online at www.PLANSPONSOR.com/research. Target-Date Mutual Fund Performance by Objective Weighted Average Total Return as of June 2017 Income 2000-2010 2011-2015 2016-2020 2021-2025 2026-2030 2031-2035 2036-2040 2041-2045 2046-2050 2050+ Total Q2 2017 1.88 2.21 2.53 2.90 3.20 3.59 3.83 4.03 4.04 4.08 4.06 3.43 YTD 4.56 5.60 6.38 7.34 8.15 9.21 9.94 10.50 10.64 10.67 10.67 8.82 Top 10 Target-Date Managers by Assets n Total assets ($billion) $350 $300 $250 $200 $150 $100 $50 $0 1 YEAR 5.84 7.83 9.28 10.92 12.49 14.50 16.06 17.12 17.47 17.47 17.49 13.87 3 YEAR 3.27 3.89 4.37 4.72 5.12 5.52 5.88 6.00 6.14 6.10 6.14 5.34 5 YEAR 4.91 6.49 7.45 8.18 9.19 9.91 10.68 10.93 11.14 11.10 11.26 9.53 10 YEAR 4.63 4.43 4.75 4.78 5.03 5.03 5.25 5.32 5.47 5.38 5.89 5.05 Organic growth* (%) trailing 12 months 70% 60% 50% 40% 30% 20% 10% 0% -10% Vanguard Fidelity T. Rowe Price American Funds J.P. Morgan TIAA Principal American Century *Organic growth measured as current period's net new flows divided by prior period's ending assets. John Hancock Source: Strategic Insight BlackRock 52 PLANSPONSOR.com November-December 2017 For full survey, see PLANSPONSOR.com/researchhttp://www.PLANSPONSOR.com/research http://www.PLANSPONSOR.com/research http://www.PLANSPONSOR.com