Two thirds of advisers (66%) are now advising their clients on managing cash allocations, research has found.
A survey by cash management platform Flagstone taking in views from 100 IFAs and wealth managers found the number doing this is up 47% since similar research carried out in 2021.
The researchers also found 62% of advisers said they are likely to continue to proactively advise on cash in the future, which is up 20% since 2021.
Flagstone noted the jump in the Bank of England base rate is the driver of this, with 93% of advisers citing appealing interest rates as the key reason their clients are holding cash more.
Other findings included 85% of respondents pointing to volatility in investment portfolios as a major driver of clients holding more cash, and 20% of advisers saying they are using a cash management platform.
Chief executive Simon Merchant said: “Once the unsung hero of investment portfolios, cash is coming into its own. We have for a long time considered cash the inevitable asset class. Assuming it is protected, cash is low-risk and in the current higher-rate market it looks set to continue to deliver hugely competitive risk-adjusted returns for a long while yet.
“Comparing our findings three years apart, it’s clear that advisers stand to play an important role in challenging and reversing inertia in the savings space. With all the available rates, returns and tools at their fingertips, those advisers who aren’t advising on cash surely have to ask themselves why not, and how much longer that can last.”
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