Value drives dash for cash

Allocations by growth fund managers to cash have increased steadily over the past couple of years, climbing from 4.5 per cent in November 2002 to 5.8 per cent last month after peaking at 7.3 per cent in March. Fund manager Peters MacGregor has 65 per cent of its assets in cash and says it's an attractive asset class at the moment because the returns are likely to rise and there's no risk of capital loss. Retail investors can also find high interest rates on cash holdings in online savings accounts and cash management accounts and trusts.

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