The State of the Target-Date Market: 2016

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The State of the Target-Date Market: 2016 Assessing the QDIA Behemoth a Decade After Passage of the Pension Protection Act Study Sections: 1. Market Overview: Leading Firms and Series 2. Underlying Investments: Fund of Funds, ETF, Multi-Manager 3. Passive vs. Active Management 4. Key Features: Glide Paths, To vs. Through, Increments, Fees & Expenses Report Contents: 60+ s 40 Exhibits and 28 Data Tables Overview Sway s first in-depth study of the Target-Date space is based on detailed analysis of more than 120 mutual fund and CIT-based Target-Date series, which controlled just under $1.1 trillion of assets at the end of 2015. This report clearly lays out the competitive landscape and opportunities within the Target-Date space, while also providing insights into the product design features that have generated the most market share. It will greatly aid any financial services executive seeking to sell into the Target-Date space, or designing Target-Date solutions. This Research Will Help You Identify key opportunities to generate AUM in the Target-Date space Expand sales by targeting the largest opportunities within multi-manager Target-Date products Enhance Target-Date design and marketability Position Target-Date products against key competitors Measure the market share of Target-Date series, providers, and key features across the full universe of mutual fund and CIT offerings Key Findings A single firm controls more than 30% of the assets held in multi-manager Target-Date funds. 90% of the assets in Target-Date mutual funds and CITs are controlled by products that invest only in the proprietary funds of the series sponsor. More than four in five Target-Date dollars is invested in a series that features a Through retirement glide path. Although there s a wide range of options for tactical glide path deviation, almost all of the assets are held in products with a range of 10% or less. Price: $7,500 Order Form attached. www.swayresearch.com Key Benchmarks/Analysis Tables and exhibits revealing the market share of Target-Date mutual fund and CIT-based series and assets by: Firm, Series and Firm Type Fund of Funds/ETF Status Proprietary, Non-Proprietary, or Multi-Manager Status Active vs. Passive Management Glide Path Type For more information contact: Chris J. Brown, Tel: 603.382.5300 Email Us: chris@swayresearch.com Tactical Glide Path Deviation To vs. Through Status Equity Landing Point 5- and 10-Year Increment Expense Ratio Quartile 12b-1 Fee Level Sample pages.

Sway Research Order Form: Complete the form and fax to 603-382-5358, or scan and email to chris@swayresearch.com I would like to purchase The State of the Target-Date Market: 2016 Assessing the QDIA Behemoth a Decade After Passage of the Pension Protection Act. This license for internal use includes two printed reports and an electronic copy (with internal distribution rights), for which I agree to pay $7,500 within 30 days of receipt of the report. Shipping and Billing Information: Name Title Company Address City State Zip Phone Email By signing below, I acknowledge that I am authorized to make this purchase on behalf of my company. I agree to the terms of use, which are that the report and its contents are for my company s internal use only. No study content is to be distributed outside of my company without the express written consent of Sway Research, LLC. Signature Date For more information contact: Chris J. Brown, Tel: 603.382.5300 Email Us: chris@swayresearch.com

Contents Foreword & Methodology 6 Executive Summary: Top 10 Findings & Key Considerations for Asset Management Executives 7 Exhibits & Analysis Section I: Market Overview 1: Percentage of Defined Contribution Plan Assets in Target Date Portfolios 10 2: Market Share of Target Date Assets by Investment Vehicle 11 3: Assets in Target Date Portfolios: Year end 2015 11 4: Market Share of T D Series by Inception Period 12 5: Market Share of T D Series by Firm Type 13 6: Market Share of T D Assets by Firm Type 13 7: Market Share Leaders by Firm: T D Mutual Fund & CIT Assets 14 8: Market Share Leaders by Firm: T D Mutual Fund Assets 15 9: Market Share Leaders by Firm: T D CIT Assets 15 10. Leading T D Series: Mutual Fund Assets 16 11. Leading T D Series: CIT Assets 16 12. Fastest Growing Firms 2013 to 2015: T D MutualFund Assets 17 Section II: Underlying Investments 13: Market Share of T D Series by Fund of Funds/ETF Status 18 14: Market Share of T D Assets by Fund of Funds/ETF Status 18 15: Market Share of T D Series by Proprietary, Non Proprietary, or Multi Manager Status 19 16: Market Share of T D Assets by Proprietary, Non Proprietary, or Multi Manager Status 19 17: Change in Market Share of Mutual Fund T D Series by Prop., Non Prop. & Multi Manager Status: 2013 to 2015 20 18: Change in Market Share of Mutual Fund T D Assets by Prop., Non Prop. & Multi Manager Status: 2013 to 2015 21 19: Market Share Leaders by Firm: Multi Manager T D Assets 22 20: Market Share of Leading Multi Manager Manager T D Mutual Fund Series 23 21: Market Share of Leading Multi Manager T D CIT Series 23 3

Contents Exhibits & Analysis Cont. Section III: Active vs. Passive Management 22: Market Share of T D Series: Active vs. Passive Management 24 23: Market Share of T D Assets: Active vs. Passive Management 24 24: Market Share of Mutual Fund T D Assets Active vs. Passive Management: 2013 to 2015 25 25: Market Share Leaders by Firm: Passive T D Assets 26 26: Market Share Leaders: Passive T D Mutual Fund Series 27 27: Market Share Leaders: Passive T D CIT Series 27 Section IV: Key Features 28: Market Share of T D Series by Glide Path Structure 28 29: Market Share of T D Assets by Glide Path Structure 28 30: Market Share of Mutual Fund T D Assets by Glide Path Structure: 2013 to 2015 29 31: Market Share of Tactical Retirement T D Series by Glide Path Deviation 30 32: Market Share of Tactical Retirement T D Assets by Glide Path Deviation 30 33: Market Share of T D Series by "To" vs. "Through" Status 31 34: Market Share of T D Assets by "To" vs. "Through" Status 31 35: Market Share of Through Retirement T Ds by Equity Landing Point 32 36: Market Share of T D Series by 5 and 10 Year Increment 33 37: Market Share of T D Assets by 5 and 10 Year Increment 33 38: Market Share of T D Assets by Target Date Range 34 39: Market Share of T D Mutual Fund Assets by Expense Ratio Quartile 35 40: Market Share of T D Mutual Fund Assets by 12b 1 1 Fee Level 35 4

Data Tables A. Market Share Leaders 1: T D Series & Assets by Firm Type 37 2: Largest T D Firms No. 1 to 20 38 3: Largest T D Firms No. 21 to 40 39 4: Largest T D Firms No. 41 to 50 40 5: Largest T D Series No. 1 to 20 41 6: Largest T D Series No. 21 to 40 42 7: Largest T D Series No. 41 to 60 43 8: Largest T D Series No. 61 to 80 44 9: Largest T D Series No. 81 to 100 45 B. Underlying Investments 10: T D Series & Assets by Fund of Funds/ETF /ETFStatus 46 11: T D Series & Assets by Proprietary, Non Proprietary, or Multi Manager Status 47 12: Largest Multi Manager T D Firms 48 C. Active Vs. Passive Management 14: T D Series & Assets by Active vs. Passive Status 50 15: Leading Firms by T D Assets in Active, Passive, and Hybrid Products 51 16: Leading Firms: Passively Managed dt D Assets 52 17: Largest Passively Managed T D Series 53 18: Largest Actively Managed T D Series 54 19: Largest Hybrid T D Series 55 D. Key Features 20: T D Series & Assets by Glide Path Structure 56 21: Largest T D Series with a Pre determined Glide Path 57 22: LargestT D Serieswitha Tactical Glide Path 58 23: T D Series & Assets by "To" vs. "Through" Status 59 24: Largest T D Firms by "To" vs. "Through" Assets 60 25: Largest "To" Retirement T D Series 61 13: Largest Multi Manager Manager T D Series 49 26: Largest "Through" Retirement T D Series 62 27: T D Series & Assets by 5 or 10 Year Increment 63 28: Largest T D Series: 10 Year Increment 64 5