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Advisers see late surge in Isa sales

Lowcock: Popular income

Investment advisers reported resilient Isa sales in the weeks before the end of the tax year deadline last Thursday.

Advisers had been hoping for a busy month in the lead-up to April 5, despite figures from the Investment Management Association showing Isas suffered net outflows of £243m in January and February 2012 alone.

Bestinvest says its Isa sales in 2011/12 are 27 per cent up on 2010/11.

Senior investment adviser Adrian Lowcock (pictured) says the best-selling funds as the April 5 deadline neared were the £1.3bn Threadneedle UK equity income fund, closely followed by the £10.7bn Standard Life global absolute return strategies and the £11.5bn Invesco Perpetual high-income funds.

Lowcock says: “I think the reason the Threadneedle UK equity income fund has been strong is many of our investors already have exposure to Neil Woodford at Invesco Perpetual and see this as a valid alternative.

“The Standard Life Gars fund has also been popular, having garnered much media attention.”

Skerritt Consultants head of investments Andy Merricks says Isa sales at his firm are up by about 15 per cent. He says: “High-yield bonds have done well as an income option, with the £3.3bn Invesco Perpetual monthly income plus and the £176m JP Morgan global high-yield funds both a success. The £1.7bn Newton Asian income fund has also done well.”

UK Wealth Management financial planning director Michael Owen says: “We have seen similar Isa sales to last year, with many taking advantage of the increased allowance. Most of our sales have come from traditional areas like UK corporate bonds and UK equity income.”


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