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Fidelity rides out storm as industry suffers Isa slump

Fidelity has weathered the sales storm better than most fund firms as Isa business acroos the industry slumped by 40 per cent for the recently ended tax year.

The US giant sold around £752m of Isas through all distribution channels in the 2002/03 financial year, a substantial drop from the £931m it achieved in the previous year.

But this was a relatively good performance compared with the industry as a whole which saw Isa sales fall by around 40 per cent, according to IMA figures.

Fidelity&#39s Isa sales through intermediaries were £209m for the year, which represented a drop of 23 per cent on the previous year when sales hit £272m.

In January and February, Isa sales through IFAs were down by 27 per cent to £48.7m from £66.6m.

Overall Isa sales through Fidelity&#39s fund supermarket FundsNetwork fell by 7.8 per cent to £395m from £426m. The platform&#39s top three selling Isas were Credit Suisse&#39s income fund, Fidelity&#39s special situations fund and Invesco Perpetual&#39s high-income fund.

Fidelity head of IFA business Stuart Holah says: “No one can deny this has been an extremely difficult year for investors and advisers alike. We are grateful for the considerable IFA support that Fidelity received in 2002/03.”

Michael Philips proprietor Michael Both says: “Clients are very reluctant to go into Isas at all this year they do not believe what fund managers say. But Fidelity has a strong and recognised brand and investors distrust them the least.”

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