Cash Management
Cash management can be essential for meeting individual suitability at any stage of a client’s journey. But it’s particularly relevant for your retirement proposition, where clients will be most reliant on income. As part of our commitment to choice and flexibility, we’ve introduced more options to ring-fence your clients’ cash on an account-by-account basis, in the way most appropriate for them.
Cover fees and charges by setting aside cash, rather than including it in a model portfolio
Allocate income payments and protect from rebalances
Or you can still use a model portfolio to automatically top up a cash account
What advisers say
Watch: Financial planners Advanta Wealth on managing client cash during the Covid-19 pandemic
with Craig Webster, Chief Executive and Iain Valentine, Financial Planner.
Is the ongoing coronavirus crisis prompting you to adapt how you manage cash for clients – perhaps holding extra cash or rebalancing more often - or are you staying the course?
We had a video chat with financial planners, Advanta Wealth, about why flexible cash management has become all the more important for them in 2020 – whether it’s to phase a large sum into markets or help ease clients' nervousness about their finances during this challenging time.
What advisers say
Jason Hemmings, Cornerstone Asset Management
Jason Hemmings from Cornerstone Asset Management tells us why advisers should play an active role helping clients who want to hold cash separately outside a model portfolio. He explains how the Platform's ring-fencing functionality enables this, without the need to create a second wrap account.
“Good cash management is particularly important if you want to run a compelling retirement offering.”
Brett Baker, Premier Financial Management
Brett Baker from Premier Financial Management explains how he manages cash for clients who are taking income and why ring-fencing cash may be needed as an ‘extra buffer’ in the current dividend crisis.
"Ring-fencing cash ensures that automated sell down won’t happen and also reduces administration."
What to do next
Training and Support
The changes to functionality are really straight forward, but if you’d like more information on how they work, we’ve created a new Knowledge Bite, which shows you how to exclude cash from a rebalance. You can access it here.
We’ve also made some updates to the Knowledge Bites for adding a single contribution, setting up a client and conducting a money allocation and you’ll find them in the Training and Support section on the platform.
Or, if you have a Business Development Manager, give them a call and they’ll be happy to answer any questions you may have.
Cash alternatives
In the past month we’ve seen the amount of interest paid to us by the four banks we use drop by 98%. With the knock-on effect that we’re paying out significantly less to clients, with the majority receiving on average 4p for April. With interest rates continuing to remain low, and the potential for them to drop down to negative, you may want to review your cash proposition.
The cash account on the platform was never intended for use as an investment vehicle, so if cash is part of your investment strategy, we have a number of cash funds available that you can search for on the platform.
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