Isa sales for 2007 continue to be lower than 2006 figures, according to data from the IMA. Richard ...
Isa sales for 2007 continue to be lower than 2006 figures, according to data from the IMA.
Richard Saunders, chief executive of the association, said lower Isa sales in February have signalled a modest start to this year's season. However, he said the increased contribution limits announced in the Budget, together with an overhaul of the system, should restore confidence in the wrapper.
Net Isa sales of £88m in February were almost three times higher than those seen in January but were down 40% from the same month in 2006. The most popular Isa sector in February was UK All Companies, accounting for 25% of gross Isa sales. Total net sales were £973m with equities accounting for £806m. Of the £973m, £761m was invested in the asset class, followed by £168m in balanced funds.
Overall, the most popular sector in February was UK All Companies, representing 18% of gross retail sales. The sector was favoured by intermediaries and accounted for 17% of gross retail business through this channel.
As ever, intermediaries were the most popular distribution channel, representing 81% of gross retail business. Gross Isa sales of £279m from fund supermarkets made them the dominant distributor of the wrapper, followed by £200m through salesforce/tied agents.
Specialist remained the most popular net retail sector in February with inflows of £384m, of which £408m went into property funds. The sector with the biggest outflows in February was UK Corporate Bond with net outflows of £203m.
Investment funds under management of £448bn in February rose less than one percentage point from January but were 21% higher than February 2006.
Isa funds under management of £52bn also rose less than one percentage point but were 10% higher than during the same period last year.