Cash still embraced as safe haven
Australians attracted to cash as an investment during the global financial crisis are maintaining their connection with the asset class, according to ING Direct.
Further, the company claims the attraction to cash is being maintained despite falling interest rates and stronger equity markets - something which has seen ING Direct's Living Super product grow to more than half a billion dollars in funds under management, with the majority of money invested in a balanced option comprising 50 per cent cash and 50 per cent shares.
Commenting on the development, ING Direct's executive director of customer, John Arnott, said the lessons learned during the GFC had endured.
Data from the first year of ING Direct's Living Super has revealed:
- 68 per cent of all super holdings remain in cash (mixture of term deposits, at call and 50 per cent balanced option)
- 52 per cent use the balanced option (50 per cent cash and 50 per cent shares)
- Males hold 53 per cent of accounts yet hold 60 per cent of all cash under management
- Males hold 82 per cent of share trading accounts
- Average client balance for males aged 60-65 years is $130,636, and
- Average client balance for females aged 60-65 years is $109,536
AUTHOR
Staff Writer
Recommended for you
Minister for Financial Services, Stephen Jones, has said he did not expect backlash to changes around advice fee deduction and believes the second tranche will have greater impact, committing to enact it by May 2025.
Financial adviser numbers are “back in black” for the year to date, thanks to 50 new entrants joining the industry over the last four weeks.
An equity partner firm of Count has purchased a Brisbane-based accounting business for nearly $1 million, as Count drives forward its inorganic growth momentum.
Australia’s looming intergenerational wealth transfer remains a crucial opportunity for financial advisers, with 14 per cent of consumers looking to transfer $1 million or more.
