Almost 50% of fund managers do not actively manage clients' cash assets and instead hold cash in bank deposits, according to a pan-European survey by Barclays Global Investors (BGI).

In the UK alone cash represents 4% of the total £1.8 trillion (€2.55 trillion) in pension assets, or £72bn, according to Mercer Investment Consulting. In Europe, institutional investors' allocation to cash tends to be slightly higher, about 5%, but in some countries it is as high as 20%, according to Mercer.