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Rollover Assets a Ripe Opportunity for Advisors, Cogent Says

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A recently released report by Cogent Research has found that while nearly half of the 396 advisors polled by the company in 2010 are failing to grasp the opportunity to win rollover assets from their clients, a tier of “highly successful” rollover advisors, representing nearly one-third of the advisors surveyed, each managed to capture $5 million or more in rollover assets in 2009.

On average, the Cogent report states that the high performing advisors have an average of $128 million in assets under management. Moreover, “the highly successful rollover advisors convert more retirement accounts and the size of those accounts is 2.4 times larger, at $344,000, than the advisors who fall into the second tier in terms of rollover success,” the report states.

David Feltman, Managing Director for Syndicated Research at Cogent, said in a release announcing the report’s findings that “it appears that there is a group of highly focused advisors who not only build the biggest books of business, but also put their mind to winning rollover assets. They are firing on all cylinders.”

Cogent says its study “illustrates that there is a significant opportunity for both asset managers and advisory firms to focus heavily on winning both IRA and employer sponsored retirement plans conversions.” While winning these rollover assets will require “a concerted effort,” Cogent continues, “retirement assets tend to be a significant portion of many investors’ portfolios.” Says Feldman: “These assets are available to be won and those who work hardest succeed at winning them. Given the propensity of retirees to move their employer-sponsored account at retirement, these funds are a ripe opportunity.”


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