AJ Bell’s Money Market model portfolio has surged in popularity over the past 12 months.
Assets in the MPS on AJ Bell’s advised platform have trebled in the past year.
Ryan Hughes, AJ Bell Investments managing director, said: “It’s been almost two years since we launched our Money Market MPS and the response from advisers has been clear – clients increasingly need the flexibility to invest in lower risk assets that provide cash-like returns.”
The popularity comes amid concerns of a potential AI bubble and record high global stock markets alongside rumours about the future of the Cash Isa ahead of next week’s Budget.
Hughes added: “Record high markets have served to foster an appetite for lower risk investments such as money market funds and short duration bonds in order to diversify client portfolios.”
Neil Stewart, director and chartered financial planner at Structured Financial Planning, said he uses the MPS as part of the firm’s “bucketing approach” to setting aside a low risk allocation alongside a client’s growth portfolio.
He added: “This helps to protect against market falls at the point of withdrawal and gives clients more peace of mind, particularly as they approach retirement.”
tara.o’connor@ft.com
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