A survey carried out by Fidelity Investments has revealed a severe lack of awareness of institutional cash funds (ICFs) amongst UK investors.

Out of 1,000 institutions interview-ed in the Fidelity Cash Management Survey, which was carried out in conjunction with the Association of Corporate Treasurers, over two thirds had never even heard of the funds.

There is still clearly a general lack of knowledge," says Peter Knight, head of institutional cash funds at Fidelity, adding: "This is a concern to us as these funds offer not only very competitive rates of interest but also excellent liquidity".

The number of ICF providers in the UK has been steadily growing over the past couple of years, who have been marketing the funds on the basis that they are a safer alternative to the bank deposit, and are a means of avoiding falling victim to a Barings-style disaster. Key pro-viders include AIM Global Advisors, Rothschild, and Northern Trust who have only recently added a dollar sub-fund to its Dublin-domiciled Global Cash Fund umbrella."