In this section
Cash options in times of high interest rates
Your clients' cash options on our platform
Is your fee income reducing as your clients look for an off-platform cash solution in these times of high interest rates?
These are challenging times to retain client assets and cash can be particularly attractive as interest rates rise. As an asset class, cash-related funds can provide high yields with lower volatility and correlate to equities and fixed interest, therefore, making it a good option for investors in a risk averse environment.
Cash may form part of your investment strategy for your clients, be that for asset allocation reasons or for managing income or fees.
At Fidelity, we offer cash accounts as well as cash and cash-like funds (cash investments) and we have a number of options to help you implement a cash investment strategy and retain your clients' assets on platform.
How to hold cash
For existing and new investments on the platform.
Cash accounts including interest
Central Cash Management Account (CMA) and Cash Accounts for ISA, Pension and Investment Accounts.
Cash funds & portfolios
List of cash funds available.
Cash in models
The three options when running models on our platform.
Adviser fees from cash
Options for paying fees and investor Fee deduction hierarchy when using the Cash Management Account.
Support for market volatility
A range of client-facing material which can help support conversations with your clients.
Implementing a cash investment strategy
It is possible to implement a cash investment strategy for existing and new accounts on the platform by opening multiple accounts for ISAs and Investment Accounts and holding different investment strategies within these.
Implementing a cash investment strategy on the platform can help to avoid foreseeable harm for your clients.
Benefits to you and your clients when holding cash investments on the platform:
- Retain greater control – as the adviser, you retain greater control over clients' assets than, if they were to be transferred to a cash deposit provider
- Retention of adviser ongoing fee – you can choose to maintain your adviser ongoing fee on cash investments should you wish
- Greater liquidity – many cash funds offer a T+1 settlement providing easy access compared to providers of fixed term deposits where money is locked in for a time period
- Quickly take advantage of the market upturns – by retaining money on the platform and investing in cash investments, you can easily move money back into the markets when the investment outlook begins to look more positive
- Diversification – Many cash funds invest in a number of issuers within the fund portfolio in order to maintain liquidity, achieve returns and capital preservation and therefore, reducing risk.
For more information, visit our Cash options hub
Help and support
Answers to the most commonly asked questions by users of our platform.
All aspects of your clients’ accounts managed through our secure online product administration system.
A transparent and flexible approach to charging.
Important information: The value of investments and the income from them can go down as well as up so your client may get back less than they invest.