A need for “wealth preservation”, amid a climate of “financial repression”, is the main reason why portfolio managers still have more than half of their clients’ funds in equities, according to firms taking part in this year’s Financial Times wealth management survey. But some believe this approach is too “cavalier” while markets are volatile.

UK and international shares make up 56 per cent of the average “balanced” portfolio, and 71 per cent of the average “capital growth” portfolio – just a percentage point less than the levels reported last year, in spite of a 9.2 per cent fall in the FTSE World Index in the past 12 months.

But wealth managers argue that only “risk assets”, such as equities, have potential to preserve the value of their clients’ portfolios in real terms.