Sales of Isas at Standard Life Investments have topped £35m in the three months since their launch according to the company.
The life office says sales of Isas have exceeded their Pep equivalents for the corresponding period last year.
Standard reports mutual funds sales for the first three months of this tax year reached £75.8m of which £35.4m were Isas. This compares to the same period last year, when sales reached £45.3m of which £34.7m was into Peps.
Standard Life Investments managing director mutual funds says: "By any measure £35m of Isa business is a very respectable figure.
"What is particularly interesting is that so much Isa business is going into our Cat standard funds. It proves there is real demand for low cost, actively managed investment products."