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78% of global high-net-worth (HNW) investors currently have relatively large cash holdings1, according to a survey2 by Capital Group, the world's largest active fund manager3, with assets under management of more than US$2.5 trillion4. Reserved about getting invested, almost half (48%) of the HNW investors now consider bonds to be as risky as equities. Among the reasons cited for concern over the next 12 months include a fear of higher volatility (60%), faster inflation (56%) and rate increases (41%).
"It's easy to be parked in cash, but we believe that perhaps the biggest market risk today is holding excess cash. Cash rates historically decay quickly after the peak in central bank rates. Hence for high-net-worth investors, having too much cash in a portfolio could...
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