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Isa sales hit £1.8bn in April but IFA share falls

Isa sales almost topped the £1bn mark in the first week of April as

investors rushed to beat the deadline for the end of the financial year.

Total Isa sales for April reached £1.8bn but IFAs lost ground to their

tied and direct rivals. IFAs took 43 per cent of all investment fund Isa

sales, a 7 per cent fall from the 50 per cent market share in March. Tied

agents and direct salesforces were responsible for 34 and 23 per cent

respectively.

The last-minute rush took total Isa funds under management over the £12bn

mark, with a quarter of all unit trusts and Oeics now held within an Isa

wrapper. Gross sales of investment funds were also up 16 per cent on April

1999 to £5.5bn.

Technology funds continued to attract investors. Gross retail sales of

tech funds were £319m, accounting for 8 per cent of all retail sales. IFAs

took 80 per cent of all technology fund sales although many may have been

through discount brokers.

Autif director of communications Anne McMeehan says: “Unit trust and Oeic

investors have remained calm in spiteof recent market downturns. Few have

chosen to cash in their funds. Increasingly, investors seem to be aware

that unit trusts and Oeics are long-term investments.”

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