The joys of being a financial adviser are endless at a time like this. Geopolitical conflicts seem to be escalating, not cooling. Inflation fears are rearing their ugly head in some of the most painful ways possible for household spending. It’s not hard to see why clients might want to ask: shouldn’t I move a bit more of my portfolio to cash?
Well, maybe. As long as they know they won't be keeping nearly as much of the interest as they might expect. Much of the attention, and criticism, of financial services' continued tendency to hoard cash margin has been focussed on platforms. Some of those at the top end of the ‘problem' like AJ Bell - which makes some £130m from cash interest a year and has told analysts to expect a continued 200 basis points margin even if the Bank of England makes rate cuts - have attracted the most ire. But the roster of names taking at least a little cut for not doing much really remains length...
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