] is shutting down its NestEgg
series of target date funds, Pensions & Investments Online reports
MFWire's sister publication 401kWire reported the news
back in July.
The P&I Online
story notes that Goldman Sachs
, and Oppenheimer
also shut down their target date fund lines in the last three months.
These four firms' target date fund series held $937 million combined last year, making up just a quarter of one percent of the open-end mutual fund market. Vanguard, Fidelity, Principal, and T. Rowe Price control about three-quarters of the TDF business.
, managing partner at American Independence, said that "it's hard to compete for shelf space." Morningstar data show that by the end of 2011, the Nest Egg series had $135 million under management.
, Morninstar analyst, gave a wider picture. “The timing may be coincidental, but it definitely suggests there's a shakeout phase going on," he said. "Companies are evaluating whether they can continue — or whether they should cut their losses."
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