By Australian Money Market (AMM)
In an investment climate marked by volatility, shifting rate cycles, and a renewed focus on capital preservation, cash is enjoying a well-deserved renaissance. Once viewed as a passive asset class, cash and cash-equivalent products are now firmly back in the spotlight for advisers seeking both certainty and yield for their clients.
For stockbrokers and investment advisers navigating a complex and evolving economic landscape, understanding how to strategically utilise term deposits, at-call accounts, and cash management accounts (CMAs) has never been more important. At Australian Money Market (AMM), we provide an independent cash investment marketplace designed to give advisers unparalleled access, transparency, and efficiency in managing cash portfolios — and we’re seeing a distinct shift in sentiment across our adviser network.
Why cash now?
Despite the RBA recently beginning to ease the cash rate in response to signs of economic slowdown, term deposit rates remain attractively high. This presents a unique window for income-focused clients, retirees, or those seeking capital preservation to lock in competitive yields while reducing portfolio risk.
Moreover, cash products are:
- Capital secure – deposits with authorised deposit-taking institutions (ADIs) up to $250,000 per account holder per ADI are protected under the Australian Government Financial Claims Scheme.
- Predictable – term deposits offer fixed returns for a fixed period, removing market timing risk.
- Liquid and flexible – at-call and cash management accounts provide daily liquidity while still offering competitive rates for surplus funds. With inflation moderating but still a concern, many clients are looking for ways to park their funds without losing purchasing power. This makes an active cash strategy not just prudent — but essential.
Role of cash in portfolio construction
Cash isn’t just a safety net. It plays a strategic role in portfolio diversification, liquidity management, and tactical asset allocation. In periods of equity market drawdowns or bond price corrections, cash acts as a volatility buffer and a source of opportunity for rebalancing. For advisers, the value lies not just in holding cash but in managing it proactively — ensuring clients are consistently invested in the most suitable products for their objectives, risk appetite, and time horizons. This is where platform solutions like AMM come in.
The power of a digital cash marketplace
Australian Money Market is a non-aligned, intermediary-only marketplace offering access to a wide range of ADIs — including major banks, regionals, and credit unions — through a single integrated portal. This streamlines the process of investing in and managing cash products across multiple clients.
Key benefits for advisers include:
- No application forms after onboarding — invest, rollover, switch or redeem funds in minutes.
- Daily interest rate updates across all providers and products.
- Customised reporting for compliance, auditing, and portfolio tracking.
- Consolidated statements and cashflow visibility across all accounts.
- Multi-client and multi-provider management through a single login.
With $8 billion in funds transacted, AMM has become a trusted partner for many financial planning practices, wealth managers, and dealer groups.
Client conversations: Framing the value
Educating clients about the value of cash products is crucial. Many still associate “cash” with negligible returns, unaware of the risk-return improvements now available. Advisers should highlight:
- The comparative after-tax return of term deposits versus dividend income.
- The strategic use of cash for future asset purchases or retirement income planning.
- The peace of mind offered by government-backed deposit guarantees.
Framing cash not as a passive holding but as a deliberate, yield-generating tool reinforces an adviser’s value proposition and fiduciary duty to act in the best interest of clients.
Final thoughts
Cash products may lack the glamour of equities or the leverage of property, but they offer something arguably more important in today’s market: stability, flexibility, and competitive returns.
As the economic cycle continues to evolve, advisers would do well to revisit the role of cash in client portfolios — not as an afterthought, but as a core component of a diversified, resilient investment strategy.
At Australian Money Market, we’re here to help advisers unlock the full potential of cash. Because in the current environment, cash isn’t just king — it’s smart.
