Approximately 72 percent of financial advisors intend to transition client funds from cash and short-term products back into the market during the next 12 months, according to a recent FUSE survey of financial advisers.
When it comes to reallocating their clients’ cash, active managers appear poised to gain: 62 percent of advisors aim to shift cash into active equity strategies, while 49 percent plan to move funds into active fixed-income strategies. Passive-equity and fixed-income strategies will see cash reallocation from 38 percent and 29 percent of advisors, respectively.
Interestingly, more than a quarter of advisors are considering channeling cash into alternative strategies such as interval funds and truly private alternatives, rather than liquid alternative mutual funds.
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