The failure of this year's Isa season will force fund firms to scrap expensive mailshots in favour of simple, point-of-sale marketing aids, says Credit Suisse Asset Management.
Writing in this week's Money Marketing, managing director Ian Chimes says fund managers must take drastic action to change the way they market funds to IFAs and their clients as mailshots are likely to become an onerous cost.
Predicting the death of the year-end rush for Isas, Chimes says mailing lists, which failed to generate new business this year, will be replaced by straightforward point-of-sale marketing aids, making the case for long-term equity investment.
He says this will mean Isas are sold month in month out through the year as tax planning solutions. To reach this point, however, Chimes says fund groups must collectively decide not to mail investors who have no long-term belief in Isas.
He says: “The mailing lists that should have provided future new business are likely to become a very onerous cost if drastic action is not taken. The future will be different from the past. We are back to face-to-face advice.”
Artemis product development & communications director Nick Wells says: “IFAs tell us that investors have simply departed the planet. They are only prepared to enter the market on the basis of point-of-sale material, not mailshots.”