Flows of new money into equity funds are likely to be subdued and uncertain during 2010, but this could lay the groundwork for a contrarian bet on asset management stocks, according to equity analysts at KBW who specialise in the sector.

The analysts, Robert Lee and Larry Hedden of KBW's US financials team, say that thanks to both market conditions and longer-term demographic trends, equity inflows, particularly from retail investors, are likely to remain "modest for a while".