With the UK base interest rate currently standing at 2% but predicted to fall further early in 2009, it is becoming more and more difficult for investors to find a home for cash holdings offering competitive rates of interest within their investment portfolios.
Indeed many would argue the traditional investment portfolio has never been more overweight with cash than many are now, owing to the unstable nature not only of equity markets, but the majority of asset classes. For the purposes of this short update, I have ignored inflation (which, oddly enough, seems like a fair assessment given the current economic situation in the UK). Offshore investment bonds and self-invested personal pensions (SIPPs) are the most popular tax-wrapped investments used by advisors in terms of cash investing, not least for the tax free/deferred status of any holdin...
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