Isa sales are on the rise after a slow start to the Isa season and equity income funds remain the most popular choice for investors.
There have been concerns that the earthquake and tsunami in Japan and the political upheaval in Libya and the Middle East along with a lack of fund launches during the Isa season may have caused sales to flatten out this year. But Chelsea Financial Services managing director Darius McDermott says his firm has seen a 35 per cent increase in Isa sales year on year.
He says: “Income funds traditionally have led the way with us and there has been no change this year, with Invesco Perpet-ual monthly income plus and Invesco Perpetual high income among our biggest sellers. Strategic bond funds have also done well.”
Bestinvest senior investment adviser Adrian Lowcock says the company has seen an increase in sales, largely due to an inc-rease in online Isa applications.
He says: “People have tried to take advantage of inflation- proofing portfolios, such as the M&G inflation-linked fund and a number of equity income portfolios. We may well have seen even greater sales if investment houses had advertised Isas more this year and the catastrophe in Japan had not put investors off for a short period.”
Skerritt Consultants head of investments Andy Merricks says: “Income is the big seller with interest rates where they are. Europe has done well, with strong sales in BlackRock European dynamic. The Investec global energy fund has also sold well, with people recognising the rise in oil prices.”
Hargreaves Lansdown investment manager Ben Yearsley says: “Technology may still surprise as there are a number of interesting sub-sectors in that market. On the whole, if I were to highlight two fund managers for Isa investors, it would be Invesco Perpetual income and high- income fund manager Neil Woodford and Artemis strat-egic assets fund manager William Littlewood.”