Investec recognises SMSF demand for cash products

Investec banking specialist Gareth Bird said high-net worth clients would remain a key part of its investment offerings, but demand for cash products has led the company to expand its cash investment options for retail investors and self-managed superannuation funds (SMSF).

While traders have historically never wanted to move away from the wholesale market, demand from mum and dad investors is increasing the need to engage with lower-end trade, Bird said.

"It's been a very successful part of our UK operation, in that they really have access to that wider retail base.

"The UK has far more mature businesses when it comes to retail deposit ratings, and we will continue to look to the UK for their experiences," he said.

With interest growing, Bird said that about a year ago the company added notice accounts for passive investors, and it now makes up a third of their product offering.

The creation of foreign currency accounts, and gold and silver investment options, have also been a strong focus for the company over the past six months, especially with those adviser groups who focus on pension transfer work, Bird said. Bird added that it is a market that hasn't been well serviced yet.

"All these initiatives are aimed at the long-term saver - they're looking for a good return, they're looking for it to keep track of where the yield curves are going, and for it to pay out some income if they need it," Bird said.

"It's about trying to add that liquidity and return element as well."

According to Bird, interest in cash has been reflected by investor's attitudes towards the market and the economic uncertainty in the past three years has suggested a more permanent shift to cash.

"Cash has almost become its own long-term strategic asset class," Bird said.

"We want to target a much wider superannuation client base, whether that is the self-managed side or some of the bigger industry super funds."