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Advisers set to boost clients’ cash holdings in 2019

More than a third of advisers expect to increase their clients’ cash holdings in the next six months, according to the latest survey from NS&I.

Security remained the top priority for advisers’ clients in the latest edition of the firm’s Financial Advice Barometer, with 42 per cent of advisers placing it at the top of their list.

The proportion of advisers recomending their clients should hold at least 20 per cent of their portfolio in cash has continued to increase, from 18 per cent in April, to 23 per cent in July, to 27 per cent in October.

Thirty-eight per cent expected to increase clients’ cash holdings, and the proportion of advisers expecting to make no change fell from 77 per cent in April to 58 per cent in October.

The results hinted at some positivity of the future propects for advice, with the number saying they were “fairly confident” rising from 40 per cent in July to 51 per cent in October.

However, there was a 14 percentage point drop in the proportion of advisers saying they were “very confident” about the profession’s future prospects.

NS&I head of intermediary relationships Andrew Pike says: “Our most recent adviser survey indicates that security remains the top priority for advisers’ clients. There also appears to be a clear trend towards cash, reflected in both an increase in the proportion of advisers expecting to increase their clients’ cash holdings heading into 2019 and an increase in the proportion of advisers that recommend that cash takes a bigger share of investment portfolios.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. I always thought that investing was for the ‘long-term’ so that you don’t miss the ‘upturn(s)’. Take the FTSE in the past 3 days for example.

    “Time in the market, not timing the market.” Now then just remind me which successful investor said that. Of course, if you are invested in the wrong assets then it may not work so well. Cash is NOT king, apart from emergency/contingency savings.

  2. NO ‘security’ with NS&I Premium Bonds. Inflation risk for all of those who gamble and win nothing. at say just 2% inflation, £30,000 over 10 years loses approx. £5,500, £50,000 loses approx. £9,000.

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