Four alternative places to park your cash

Holdings in cash among wealth managers have been rising in recent months as profit-taking off the back of rising equity markets, coupled with fears over slowing global growth, prompt valuation fears for some risk assets.

Wealth managers are therefore finding themselves holding above average amounts of cash for clients but, with the asset class yielding virtually nothing, they are having to look for innovative solutions to get a decent return. Although it can be dangerous to think ‘outside the box’, they said there are a number of options which offer less risk and volatility than markets, but a higher return than current cash accounts. 1 Zero-dividend preference shares Unlike ordinary preference shares, these are not required to pay a dividend. Instead, the holder earns income from capital appreciat...