$1 trillion in 130/30 by 2011, says Merrill

Merrill Lynch's report assumes total U.S. institutional assets in 130/30s currently total $50 billion.

Assets in 130/30 strategies could total $1 trillion by 2011, according to a new Merrill Lynch report based on company projections.
The firm surveyed 160 U.S. institutional investors with a combined $1.5 trillion in assets. Based on that sample, the report assumes total U.S. institutional assets in 130/30s currently total $50 billion.
The Merrill Lynch projection assumes those investors will shift anywhere from 5% to 20% of their public equity allocation to 130/30 strategies over the next three years, a total of $75 billion to $300 billion. Adding the $300 billion to the current $50 billion and assuming retail assets in 130/30s will reach $100 billion to $200 billion, the report predicts as much as $500 billion in U.S. assets.
With total non-U.S. assets on par with U.S. assets, the report says the same interest in 130/30s abroad could mean potential non-U.S. flows of another $500 billion into the strategies.