Is it time to raise cash allocations?

Darryn Lake, Director, JLT Employee Benefits We are very much on the anti-cash strategy; we see it as a last resort to avoid volatility. The returns available on cash, when you have inflation running at around 2.7%, are negative. Even over the longer term, the maximum you are going to receive is 2% - even more likely, 1% - so you are still negative in real terms. You really have to believe Armageddon is ahead for cash to be an option. We prefer absolute return bonds and are very much pro equity but, of course, you have to take your client's risk profile into account with the latter....