Analysis by platform provider Zurich shows nervous investors are switching into cash ahead of the European Union referendum tomorrow (22 June).
The provider has seen a 20 per cent increase in cash being held by savers on its retail platform.
This is both clients wanting to switch of their own volition and advisers encouraging them to make this decision, according to Zurich.
Alistair Wilson, Zurich’s head of retail platform strategy, said even during the sharp stock market falls of 2015 the industry didn’t see the levels of cash holdings at the height they are today and the amount being put into cash continues to climb.
Mr Wilson said: “In the last two weeks alone we have seen cash levels soar by 20 per cent. We know uncertainty has an impact on stock market volatility and clients appear to be increasingly flying to the safety of cash.
“Whatever the outcome, volatility and nervousness could endure. Many clients may decide a controlled, phased re-entry is safer for them”.
Paul Lindfield, director of wealth management of Manchester-based Sedulo Wealth Management, said: “If they are switching to cash this week they are very late - they are not going to make a difference by doing it now.
“It would be the same with currencies.”
Earlier today FTAdviser’s sister newspaper Investment Adviser issued a warning about whipsaw market movements after fund selectors and managers rushed to take risk off the table ahead of tomorrow’s EU referendum.
Some investors have moved into ‘safe’ assets ahead of tomorrow’s vote amid fears of market falls and further shifts in asset allocation.