Advisers say 'cash returns don't cut it' as equity exposure soars

Three quarters of advisers have helped clients increase equities exposure

Hope Coumbe
clock • 1 min read

A large majority (89%) of financial planners are helping clients increase their equities exposure fearing cash returns “won’t cut it” if interest rates fall again, Wesleyan has found.

The mutual's latest poll of advisers found almost three quarters (73%) have already helped all or most of their clients to increase equities exposure. Head of intermediary distribution Nick Henshaw said: "The scale and speed of future rate reductions is far from certain, as external headwinds beyond just the rate of UK inflation are still in play." Almost half (45%) of respondents said they were using smoothed funds to achieve more equity exposure – an option Henshaw said provided a solid "middle ground" for clients looking to re-engage with equities. A total 43% of surveyed advise...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Investment

Partner Insight: AI and demographics - the economic tug of war

Partner Insight: AI and demographics - the economic tug of war

The economic future is unlikely to look like the recent past. Artificial intelligence or demographics will drive change.

Joe Davis, Chief Economist and Head of Investment Strategy Group, Vanguard
clock 16 July 2024 • 6 min read
Scotland Investment Roadshow 2024: Join PA in a city near you!

Scotland Investment Roadshow 2024: Join PA in a city near you!

Join us in Edinburgh or Glasgow this September

Professional Adviser
clock 15 July 2024 • 1 min read
PA Awards 2024: Canada Life AM on winning Best High Income Fund

PA Awards 2024: Canada Life AM on winning Best High Income Fund

A look at how the financial services firm has risen to the top

Professional Adviser
clock 12 July 2024 • 4 min read