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Tuesday, October 04, 2011|
Casey Quirk Issues Stern 401k Warning to Fund Firms
Fundsters looking to get into the 401(k) space, take heed. Target-date funds will represent nearly half of the total $7.7 trillion in US DC assets by 2020, with low cost passive funds along with customized active accounts leading the way and squeezing out mutual funds, according to new data from Casey, Quirk & Associates.
By 2020, assets invested in passive strategies and innovative active portfolios will capture an increasing share of the overall target date market, approximately 74 percent versus almost 52 percent in 2010, according to the data.
Some products Casey Quirk expects will capture market share within target date structures this decade are tactical asset allocation, hedge fund-like strategies, mixing active and passive and proprietary and non-proprietary strategies, and retirement income.
"As target date retirement funds mature, the landscape will favor innovators providing strategies common in the defined benefit world, and low cost passive providers,'' stated Casey Quirk partner David Bauer. ''There is tremendous opportunity but managers must thoroughly examine the market complexities before jumping in.''
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