Search
 

IRA Rollovers Could Fuel Growth of Managed Accounts

BOSTON - A wave of IRA rollovers over the next four years could spark a significant increase in separately managed accounts (SMAs). According to the Financial Research Corp.(FRC), by 2008 money rolled over into IRA accounts is expected to deliver more than $50 billion annually in SMA net flows. Through...

By Staff Writer | Updated on September 07, 2004

BOSTON – A wave of IRA rollovers over the next four years could spark a significant increase in separately managed accounts (SMAs). According to the Financial Research Corp.(FRC), by 2008 money rolled over into IRA accounts is expected to deliver more than $50 billion annually in SMA net flows. Through SMAs, investors can own stocks or bonds selected by a money manager but unlike a mutual fund, there is a feature that allows holdings to be customized. FRC reports that nearly $2 from every $5 invested in SMAs will come from an IRA rollover. Of the $500 billion in SMAs in 2003, roughly 45% were held in IRAs. An estimated 25% of the $30 billion in net flows to SMAs came from IRA rollovers. Nearly 93% of firms customize less than 25% of their SMA client accounts, according to FRC. The firm is expecting that percentage to increase as a result of wider adoption of unified management account platforms and savvier technology that offer advisers the opportunity to view a client’s entire investment makeup.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.