The prospect of a redeployment of the accumulated liquid wealth—or a portion of it—into investment products is a welcome development for many investment product providers, including fund manufacturers. After three years of slow new sales inflows, fund companies are eagerly eyeing the “money on the sidelines” asset pool. To effectively target this potential opportunity, fund companies need to establish just how significant the available liquid asset base is and with whom (which distribution channel) it resides.
The April issue of Insight answers these questions with a refined perspective on the size of the immediate “money on the sidelines” opportunity, as well as its composition and delivery channel mix. The objective is to identify and locate those liquid assets that are most likely to move into the realm of market-sensitive instruments once the fear subsides.