The Financial Research Corporation (FRC) study said rollover totals should increase steadily from their 2007 levels of $260 billion. FRC said the rollover trend should present money managers with “significant retention opportunities.”
FRC said the rollover market presents the potentially rich market with chances of at least $40 billion per year in assets on the line for retention “and potentially much more for acquisition.”
The agency said its findings are derived from a combination of FRC’s repository of IRA research, proprietary and third-party quantitative data—including the FRC Rollover 2008 Recordkeeper Survey—and FRC’s Rollover 2008 Asset Manager Survey. Additionally, FRC said the findings are based on numerous interviews with executives at financial services firms.
In this latest study, FRC evaluated distribution platforms and assessed the involvement and impact of asset managers in capturing and retaining rollover assets.