Cash is best: discretionary managers choice of investment

Cash is becoming the investment of choice in offshore bonds - at least in the short term - as discretionary managers show reluctance to put high net worth clients into equity or bond funds in the current climate. Nicholas Burton, head of marketing at Norwich Union International, estimated at least three-quarters of offshore bond business currently coming from discretionary managers is sitting in cash with a view to shifting into funds later. He added that growing investor nervousness since the Northern Rock collapse meant cash holdings were now being split between a number of institutio...