View more on these topics

No signs of Isa revival as sales fall in January

The Isa season got off to a poor start in January as net retail sales of investment funds fell by almost 3 per cent from December.

The figures, compiled by the Investment Management Association, formerly Autif, showed net retail sales for January fell to £621.1m from £637.5m in December and from £1.1bn in January 2001 – a drop of over 40 per cent over the year.

Net Isa sales were down even further, falling by 47 per cent on last January to £275.6m from £517m.

IFAs continued to lose Isa market share to tied agents and salesforces in January, with IFAs accounting for just 35 per cent of Isa business compared with 37.5 per cent in December.

Tied channels took 40 per cent of January Isa sales while the direct channel took 25 per cent.

The UK all companies and North American fund sectors were the most popular among IFAs in January, accounting for 22 per cent and 15 per cent respectively of total intermediary sales.

In the tied sector, corporate bond funds proved to be most popular, accounting for 37 per cent of sales.

IMA head of communications Clare Arber says: “Two years of disappointing returns from equities have made many people reluctant to invest in assets which may be more volatile in the short term. However, there are signs that investors are balancing their portfolios by investing proportionally more in the UK income sectors.”

Alan Steel Asset Manage-ment consultant Alan Adam says: “We have seen a bit of activity in the last couple of weeks so I think we will get a slight pick-up towards the end of the tax year but I do not think that it will be anything like the spike we have seen in previous years.”

Recommended

Women less likely than men to seek IFAs&#39 advice

Women are making poorly informed financial decisions and are less comfortable making them than men, acc-ording to research from IFA Save & Invest.Over a quarter of women, 28 per cent, say they are making financial decisions without being armed with the necessary information to make properly informed choices.Only 22 per cent of women would go […]

Theatreshare of dreams

Theatreshare is a theatre production company aiming to raise £2m through an enterprise investment scheme (EIS) share offering. The company will use the capital raised to fund musicals, plays and other productions in London&#39s West End. In its first year it will put on Chitty Chitty Bang Bang, Our House and Bombay Dreams. Eighty per […]

Boyd on FSA board for further three years

Chancellor Gordon Brown has reappointed Stewart Boyd QC to the board of the FSA for a further three years. The board is mostly made up of non-executive directors and it decides issues such as the remuneration of FSA chairman Howard Davies and the other executive directors. Brown says: “He has played an important role as […]

Gaskin takes over As BA&#39s chief exec

Former Misys IFA Services chairman and Exchange managing director Jim Gaskin is taking over as chief executive of network Burns-Anderson.Current Burns-Anderson CEO Steve Kelland is stepping down from the role but will remain as chairman.Gaskin left his job at The Exchange last November after its takeover by Marlborough Stirling.Kelland says Gaskin has been chosen for […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment