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Custodians tempt clients back to risk

Investors are being advised to end their flight to safety and seek higher returns for their cash

Investors who lend out their securities through custodians are being advised it is time to take on more risk to achieve better returns. Thanks to the stabilisation of the global economy, reinvestment opportunities that had dried up after the collapse of Lehman Brothers may be coming back into fashion.

Some custodians are advising investors to consider putting the cash they receive as collateral for shares they have lent out to work in riskier assets. It follows a "flight to safety" that came after the financial meltdown, when they were advised to forego higher returns and concentrate on lower-yielding, but less risky, assets.

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