Cash holdings remain high while market claws back ground
Cash holdings have remained high among investors despite evidence of a sustained rebound in world share markets, according to the head of investment strategy at UBS, George Boubouras.
Boubouras claimed the rally in the market is the start of a longer upward trend that will occur across most global share markets.
Australia, Britain, the United States, Europe, Japan, Hong Kong and China will benefit from the trend as investors look to leverage their exposure in the years ahead, he said.
The 3,120 basis point mark in March was the lowest point in 2009, and markets will move to more normal valuations over the next 12 months, Boubouras said. The share market has rallied 38 per cent since March.
However, many investors are still stranded in cash while global equity has rebounded, with the cash weightings for super funds, institutional funds and private clients hitting record levels. Cash has also been falling, but it still remains above long run average levels, Boubouras said.
The equity market has already discounted further deleveraging, and investors in cash will look to enter the market if there is a pullback, he said.
Recommended for you
Super trustees need to be prepared for the potential that the AI rise could cause billions of assets to shift in superannuation, according to an academic from the University of Technology Sydney.
AMP’s superannuation business has returned to outflows in the third quarter of 2025 after reporting its first positive cash flow since 2017 last quarter.
The major changes to the proposed $3 million super tax legislation have been welcomed across the superannuation industry.
In holding the cash rate steady in September, the RBA has judged that policy remains restrictive even as housing and credit growth gather pace.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
215.17 3 y p.a(%)
2
Lakehouse Small Companies
152.92 3 y p.a(%)
3
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
4
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
5
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
