Wyatt Lee On Target Date Funds

‘Phenomenal’ Growth For Target Date Funds


Target date retirement funds are witnessing “phenomenal growth”. The trend is not going away anytime soon and that is good news for mutual fund companies and independent advisors, says Wyatt Lee, co-portfolio manager for Retirement Date Strategies at T. Rowe Price. Lee has been with the $860 billion mutual fund company since 1999.

On O“I think if I look all-in across the universe, it’s like a trillion dollars from mutual funds to separate accounts,” he says, owning most of the growth to the defined contribution (DC) market. Around 80% of target date funds are coming from those defined contribution plans run by companies. “We benefit because every time an investor gets a paycheck, we get another contribution,” Lee says.

In the video, Lee tells RIA Channel’s founder Julie Cooling that there is more to the target date fund’s success than the DC plan. In short, these funds lead to better long-term performance, and smarter asset allocation for retirees. There’s a lot of moving parts in building target date funds, so what differentiates T. Rowe Price from the rest of the pack? Lee gives us the elevator pitch on why T. Rowe is one of the best in the business.