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Fund managers and advisers are divided as to whether UK cash unit trusts will be affected by the same lack of confidence that has hit US money market funds in the wake of the collapse of Lehman Brothers.

In the week following 15 September, on what has been dubbed by many as “Meltdown Monday”, US money market funds suffered outflows of an estimated $197bn (£106bn).

That week also saw the shock announcement that the oldest of these funds, Reserve’s Primary fund, would return only 97 cents to the dollar - the first time in 14 years a US money market fund’s shares had fallen below par.

But UK managers were relaxed about the possibility this lack of confidence could be reflected by retail investors in UK money market funds.

Jason Hollands, a director of F&C, said he did not expect a wholesale flight from money market funds.

“The UK is different from the US in that, over there, money market funds are held by many retail investors, particularly in 401K plans, and often have chequebooks attached. In the UK, money market funds are not widely held by small investors - they are used more by institutions.”

Peter Hicks, head of IFA business at Fidelity International, said: “Our cash funds are Treasury-style money market funds - which means they have a stable NAV - and not investment-style cash funds, which are usually short-term bond funds without a stable NAV. Both types can be found in the IMA money market sector, but there is definitely a very significant difference.”

However, Mark Osland, director at Croydon-based IFA Formula, said: “The increased spread of assets within these funds is good, but you do not know where the money is invested. And because the holdings are considered to be equities, investors’ compensation is not as good as for an insurance bond.

"None of our clients have asked us to take them out of money market funds, but equally, very few people so far have asked us what we think about the security of their banks, and there could be a creeping realisation that there is a risk.”