Wealth managers under pressure as clients demand higher cash levels

Wealth managers are being trapped in the tricky position of responding to nervous clients' demands to hike cash weightings in portfolios, while at the same time trying to meet their growing income requirements.

While investment managers say there was a brief pick-up in investor sentiment following the Conservative UK election victory, they suggest this has turned negative again on the back of continued turmoil in Greece. The perception that UK equities offer little value is also concerning clients. Neil Jones, investment manager at Hargreave Hale, said he is holding between 5%-10% cash in his client portfolios. He said: “Caution is definitely growing among clients. There were concerns about the election and we were being asked to raise money before the election result just in case. “Peopl...