Cash has been the worst performing asset class: M&G

The manager of the M&G Episode Income Fund said inflation and poor rates of return have eroded the real value of cash.

He said: “Crucially, this means that savers who kept their money in savings accounts will be feeling the pinch a bit more than others as the true purchasing power of their money has been completely eroded.”

Base rates dropped to 0.5 per cent in March 2009 and have not risen since.

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By contrast, UK equities would have provided investors with an impressive return of 99.4 per cent.

Mr Andrew said: “Savers who put money into other asset classes during that period would have seen a positive return on their investments of at least 20 per cent.

“UK equities and global equities provided the highest positive return after deductions with 99.4 per cent and 69 per cent, respectively. This was followed by a 53.6 per cent return from UK corporate bonds and a 20.5 per cent [return from] commercial property.”