Advisers are experiencing frequent problems with risk-adverse clients holding large amounts of cash, despite the menace of inflation, according to J.P. Morgan Asset Management.
Many conservative investors are losing money by holding excessive amounts of cash, the firm said, and has launched an inflation calculator to help IFAs demonstrate losses to clients. "Advisers tell us that getting their more conservative clients to consider investments outside of cash is a frequent problem," said head of intermediary marketing Scott McKay. "With many savings accounts yielding less than the inflation rate today, investors are losing money in real terms." The calculator hosted on the firm's intermediary site shows a number of cash positions held by clients would erod...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
