Target-date funds were given a huge boost by the Pension Protection Act of 2006.
This legislation provides the basis for target-date funds to serve as default options in 401k plans.
The result is that 43 percent of people in their 20s held target date funds at the end of 2008. Target-date funds attracted $41.8 billion in assets.
This is despite the fact that certain target-date funds labelled 2010 (i.e. presumably for investors retiring in 2010) lost as much as 41 percent in 2008.
Source: Bloomberg
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