Purchases of investment trust Isas through investment trusts and their managers sunk 35 per cent in 2003 according to the latest statistics from the AITC.
Isa sales fell to £61m in 2003 from £93.2m in 2002. The total purchases of Isas through investment trusts and their managers in Q4 2003 decreased 2 per cent to £10.8m from £11m in Q4 2002.
The AITC's figures represent data from 205 investment trusts for saving schemes and 185 investment trusts for Isas. The results show the global growth sector continues to be the most popular area with investment trust Isa investors, accounting for 30 per cent of purchases, some 9 per cent of which were through financial advisers.
The numbers reveal the total purchases of investment trust saving schemes through investment trusts and their managers in 2003 also decreased, to £179.4m from £205.6m in 2002, a decline of 13 per cent.
AITC communications director Annabel Brodie-Smith says: “The quarter running up to the Christmas period has historically been a quieter time for investment trust Isa purchases, but it is never the less disappointing to see 2003 Isa purchases 35 per cent down on 2002.
“Clearly the market has some way to go before investors are tempted back in the same numbers we have seen in the past. Saving scheme purchases which account for the largest proportion of investment trust retail purchases were less volatile.”