Sales of UK investment fund Isas plunged 43 per cent year on year in June from £191m to £109 million, according to Investment Management Association statistics.
IMA research also reveals sales in June were 20 per cent less than the previous month and overseas Isa assets fell 1.9 per cent from May’s levels to £259 billion.
IMA says net sales of overseas domiciled investment fund Isas saw outflows of just £100,000 in June 2007, compared to £1.2 million in May.
The research also shows fund supermarkets are the dominant distributor of Isas, with gross sales of £320m, followed by £180m through sales force/tied agents.
IMA chief executive Richard Saunders says: “June was a slightly slower month for retail investment, but sales in the second quarter of 2007 overall held up well.
“Investment in Isas continues to be at a modest level, which is puzzling given the buoyancy of industry sales in the last two years. It is to be hoped that the recently published reforms to Isas from next April will help to revitalise the product.”