A third of Wealth Managers in the UK have added cash to client’s portfolio’s in order to anticipate the effects of a potential market correction, according to a survey released by Legg Mason Global Asset Management.
The survey, which includes the views of asset managers collectively managing about £100bn (€111.7bn) revealed that 32% of wealth managers are currently holding cash.
At the same time, almost a third of respondents also described themselves as optimistic when it came to their attitude to risk and an additional 39% described themselves as “somewhat optimistic.
Moreover, 82% of respondents argued that there were still opportunities in financial markets.
Alex Barry, head of UK Sales at Legg Mason Global Asset Management, argued that the results showed the dilemma wealth managers currently face: “Having seen so many assets appreciate meaningfully throughout 2017, it is understandable wealth managers may be adding some protection to portfolios now,” he said.
“Nonetheless, with interest rates near record lows, the environment remains supportive for investors keen to take some risk to achieve a return above cash, and we could see a continuation of the current trend for some time to come” he added.