Investec: IFAs must spend more time managing client cash

One in three IFAs believe that having access to a broader range of cash deposit products and rates on wrap platforms would help them enhance their value proposition to clients, new research from Investec Specialist Bank has revealed.

Despite this, however, 78 of 100 IFA respondents to the survey spend 10 per cent or less of their time managing the cash element of a typical portfolio. Some 11 per cent spend no time at all managing client cash holdings.

The research also revealed that 22 per cent of IFAs believe having access to a wider range of cash products on wrap platforms would increase the total assets under their advice, with 19 per cent suggesting it would improve the accuracy of asset allocation.

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Lionel Ross, spokesman for Investec Specialist Bank, said: “It is reassuring to see that IFAs understand the importance of being able to offer clients a broad range of cash deposit products. However, it is also concerning to see that some spend no time at all on managing the cash element of a client’s portfolio.

“The role of cash deposit products/rates on wrap platforms will change substantially over the next few years. It is up to those IFAs to spend more time on this element of a portfolio to potentially gain a significant advantage for their client.”