The potential rewards from generating improved returns on clients' cash are huge, says Giles Hutson, but while competition in this part of the market may be improving, the psychology surrounding cash still needs to change
Stockmarkets are riding high and, while the timing of any correction is hotly debated, most commentators believe investors should be prepared. At the same time in the current cycle, UK government bond yields remain at, or close to, all-time lows. This dislocation between the equity and fixed income markets means many advisers are recommending clients take some ‘chips off the table' and increase the percentage of their investment portfolio held in cash. I was recently presented with a balanced portfolio with a suggested cash allocation of 8% while, for a defensive portfolio, it can be as ...
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