Data & Research March 4, 2007

Affluent Americans Not Taking Advantage of Rollover Opportunity

Nearly half (44%) of affluent Americans, and 53% of those with more than $5 million in investable assets, have assets remaining in a former employer's retirement plan.
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New research by Cogent Research, a Cambridge, Massachusetts-based firm, found that the average amount of assets invested in plans of former employers is $259,521, or on average 28% of an affluent American’s investment portfolio. Seventeen percent of those with assets in a former employer plan have more than half of their total investable assets, exclusive of real estate, in such plans.

Sixty-two percent of affluent investors with assets in a former employer’s plan have not moved these assets despite at least one current active adviser relationship, the study found. Among the remaining 38% who say they do not currently use an adviser, younger investors, particularly those ages 43-51 are more likely than their older counterparts to leave assets in the plans of former employers.

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A roughly equal proportion (13%) of those with investable assets of $100,000 to $250,000, have 76% to 100%, virtually their entire investment portfolio, in the plan of a former employer, according to Cogent Research.

More than half of respondents (57%) who said that a portion of their investable assets are still in a plan sponsored by a former employer continue to be employed full-time outside of the home. Only 14% are fully retired and 9% are semi-retired.

Cogent Research’s study of 4,000 affluent and high net worth Americans will be available later this month, the company said. The study includes a survey conducted online of a representative cross section of 4,000 adults with at least $100,000 in investable assets with significant participation of high net worth investors with more than $2 million in investable assets. Cogent conducted the survey between October 6 and November 1, 2006.

The Markets March 4, 2007

Collared Long/Short (120/20) Strategy Launches

Janus Capital Group Inc. subsidiary Enhanced Investment Technologies LLC (INTECH) has announced the launch of its Collared Long/Short (120/20) strategy, which will be available to both U.S. and non-U.S. institutional investors.
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The INTECH Collared Long/Short (120/20) strategy uses a universe of U.S. securities benchmarked to the Russell 1000 Index. The strategy’s portfolio weights are determined by extending the active positions from INTECH’s long-only strategy building on the same risk managed mathematical investment process developed by INTECH in 1987, according to a press release.

The strategy will target an annualized average gross return over the long term of between 4.75% and 5.25% above its benchmark index with a beta of 1.0 and an approximate information ratio of 1.0.

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According to a press release, the new offering was developed in response to strong demand for an active, risk-managed, long/short equity capability to complement INTECH’s range of U.S., global and international equity strategies.

Mathematical Methodology

INTECH’s proprietary investment process relies on a mathematical methodology rather than fundamental analysis of companies, according to the firm. INTECH begins by attempting to identify stocks with high volatility relative to the index and low correlation to each other. Within specific risk constraints, INTECH identifies target weightings of these stocks in an attempt to take advantage of the natural volatility of stock price movement. This structured process results in virtually no style drift, according to a press release.

In addition to the Collared Long/Short (120/20) equity strategy, INTECH’s risk-managed active-equity disciplines include: Enhanced Index, Enhanced Plus, Large Cap Core, Large Cap Value, Large Cap Growth, Global Core and International Equity.

Headquartered in Palm Beach Gardens, Florida, and with research facilities in Princeton, New Jersey, the INTECH employs 69 staff and manages approximately $62.3 billion in assets as of December 31, 2006.

MORE at http://www.janusintech.com

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