Wells Fargo is one of the winners of the shift in market share with net inflow of investments up 129% in 2009 and 37% in 2010.
In addition, Invesco Balanced-Risk Retirement and PIMCO RealRetirement have been particularly innovative in their series structure, emphasizing generating real return and limited risk close to retirement, the survey says.
Another unexpected finding, according to Morningstar, is that target-date funds have continued to attract new money even after the investors' reach their retirement date. Funds designed for investors retiring in 2005 and 2010 have continued to see small, but positive, net inflows, possibly because account holders have postponed retirement or because large contributions are off-setting smaller withdrawals.
"The trend may impact the way target-date funds manage their asset allocation in post-retirement years," Morningstar says.
-Karen DeMasters