Investors continue to favour keeping high levels of cash as a safe investment option following changes in appetite toward risk.
They are currently more concerned with keeping investments in a safe haven, rather than risking exposure with higher-growth assets.
"Cash is still very important and our flows are still definitely increasing from our existing advisers," Investec head of adviser distribution Gareth Bird told InvestorDaily.
Bird cited prudent views toward market conditions and volatility as reasons for the trend.
"Even though rates have been coming off over the last six weeks or so and starting to make the cash returns look unattractive compared to where they were a year ago, there is still very good support there," he said.
"That gives you that indication that they're maybe not so concerned about those 50 less basis points."
He said the underlying investor attitude towards risk had changed since the global financial crisis caused investors to look for safe investment options, rather than alternatives that might give higher growth.
"I'm not so sure that it's a temporary change. I think it might be a permanent change in clients' attitude and appetite towards risk," he said.
"What that ultimately means for advisers is that it is going to focus them on finding these far less riskier investments going forward.
"Their ultimate goal is trying to find the risk associated with a cash-line product, but maybe something that pays 2 to 3 percentage points higher than what the cash returns are."
