View more on these topics

Foot and mouth and floods blamed for slump in sales

The Pep and Isa Managers Association is reassuring IFAs and fund managers

that the recent plummet in Isa sales is not a sign that the funds are

losing their appeal.

Isa sales were down by 43 per cent to £1.3bn in March from more than

£2.3bn in the same month last year and the new tax year started off

just as badly, with April and May Isa sales down by 25 and 17 per cent

respectively on the same months last year.

But in its latest newsletter, Pima blames factors such as the winter

floods and the foot and mouth outbreak for the drop in sales.

It says: “The knock-on effect of these two natural disasters, to say the

least, has devastated the economic position of a substantial part of the

investor population and savings have taken second place to survival.”

Pima also highlights the general election as injecting a degree of

uncertainty into markets, temporarily discouraging new investment.

It concludes that the Isa market is still looking positive. It says:

“Taking the many down factors into consideration, there should be no

surprise at the downturn in subscription at this time.”

Simpsons partner Andrew Merricks believes that Isas are popular but there

is still a degree of confusion surrounding them. He says: “If people have

money to invest, Isas will still be the first place they look. Any time the

markets are struggling, people are less interested.”

Recommended

Burrows offers annuity alerts

Morestead director Billy Burrows is setting up a free website and offeringIFAs with email alerts when annuity rates change. The site, www.askannuity ifa.com, aims to help IFAs who do not specialisein the annuity market to offer the best advice to clients after or atretirement. Burrows has already signed up a number of big annuity providers, […]

Invesco Perpetual – UK Aggressive Fund

Tuesday, 10 July 2001.Type: Unit trust.Aim: Growth by investing in UK equities.Minimum investment: £1,000.Investment split: 100 per cent in UK equities.Isa link: Yes.Pep transfers: No.Charges: Initial 5.26 per cent, annual 1.5 per cent.Commission: Initial 3 per cent, renewal 0.5 per cent.Tel: 0800 0282121. 

Forsyth Partners – Forsyth Sterling Global Growth Fund

Friday, 13 July 2001.Type: Sicav.Aim: Growth by investing in equities and bonds.Minimum investment: £5,000.Place of registration: Dublin.Investment split: UK equities 60 per cent, international 25 per cent, bonds 10 per cent, cash 5 per cent.Isa link: No.Charges: Annual 1.75 per cent.Commission: Initial up to 5 per cent, renewal 0.75 per cent.Tel: 01534 285195.

Govett fixes interest in bonds

Govett Investments has unveiled the corporate monthly income fund, which invests in fixed interest securities including sterling denominated corporate bonds and UK gilts.This open-ended investment company aims to provide a combination of capital growth and income with a target yield of 7 per cent a year. It invests in between 50 and 60 corporate bonds […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment