@article{ART003039773},
author={Jaeyoon Choi and Young Kyu Park and Inwook Song},
title={TDF Fee, Cash Flow and Performance Analysis},
journal={Asset Management Review},
issn={2288-6672},
year={2023},
volume={11},
number={2},
pages={17-37},
doi={10.23007/amr.2023.11.2.17}
TY - JOUR
AU - Jaeyoon Choi
AU - Young Kyu Park
AU - Inwook Song
TI - TDF Fee, Cash Flow and Performance Analysis
JO - Asset Management Review
PY - 2023
VL - 11
IS - 2
PB - Institute of Management Research, SungKyunKwan University
SP - 17
EP - 37
SN - 2288-6672
AB - The paper examined the characteristics of the Target Date Fund (TDF) market by exploring the fees, cash flows and performance of TDF. First, the weighted average total fee for TDF showed a positive correlation with the top three fund families. In particular, the top three fund families were more sensitive to sales fees than management fees. Second, TDF cash flows were found to have a positive correlation with lagged cash flows and fund assets. Fund cash flows are influenced by the tendency to maintain consumer behavior, and fund assets align with the characteristics of consumers selecting funds centered around large funds and reputable fund families. Third, TDF cash flows were positively correlated with operational performance, especially showing greater sensitivity to long-term performance. Fourth, TDF performance showed a negative correlation with the Herfindahl-Hirschman Index (HHI). This indicates that as the market becomes more monopolistic, it has a detrimental effect on performance, suggesting that the incentive to strengthen operational capabilities weakens as market competition decreases. In summary, the results suggest the existence of a market preemption effect in the TDF market. However, a monopolistic market structure can negatively impact performance, resulting in a decline in consumer welfare. Therefore, we suggest that the government needs to support policies to improve market structure, such as disclosure and strengthening the role of distribution channels.
KW - TDF(Target Date Funds);Cash Flow;Fund Fee;Performance;Herfindahl –Hirschman Index
DO - 10.23007/amr.2023.11.2.17
ER -
Jaeyoon Choi, Young Kyu Park and Inwook Song. (2023). TDF Fee, Cash Flow and Performance Analysis. Asset Management Review, 11(2), 17-37.
Jaeyoon Choi, Young Kyu Park and Inwook Song. 2023, "TDF Fee, Cash Flow and Performance Analysis", Asset Management Review, vol.11, no.2 pp.17-37. Available from: doi:10.23007/amr.2023.11.2.17
Jaeyoon Choi, Young Kyu Park, Inwook Song "TDF Fee, Cash Flow and Performance Analysis" Asset Management Review 11.2 pp.17-37 (2023) : 17.
Jaeyoon Choi, Young Kyu Park, Inwook Song. TDF Fee, Cash Flow and Performance Analysis. 2023; 11(2), 17-37. Available from: doi:10.23007/amr.2023.11.2.17
Jaeyoon Choi, Young Kyu Park and Inwook Song. "TDF Fee, Cash Flow and Performance Analysis" Asset Management Review 11, no.2 (2023) : 17-37.doi: 10.23007/amr.2023.11.2.17
Jaeyoon Choi; Young Kyu Park; Inwook Song. TDF Fee, Cash Flow and Performance Analysis. Asset Management Review, 11(2), 17-37. doi: 10.23007/amr.2023.11.2.17
Jaeyoon Choi; Young Kyu Park; Inwook Song. TDF Fee, Cash Flow and Performance Analysis. Asset Management Review. 2023; 11(2) 17-37. doi: 10.23007/amr.2023.11.2.17
Jaeyoon Choi, Young Kyu Park, Inwook Song. TDF Fee, Cash Flow and Performance Analysis. 2023; 11(2), 17-37. Available from: doi:10.23007/amr.2023.11.2.17
Jaeyoon Choi, Young Kyu Park and Inwook Song. "TDF Fee, Cash Flow and Performance Analysis" Asset Management Review 11, no.2 (2023) : 17-37.doi: 10.23007/amr.2023.11.2.17
