Isa season expected to hit acold front

Although the FTSE 100 has fallen for three consecutive years and the forthcoming Isa season is not expected to be plain sailing there are still areas of opportunity for investors and intermediaries

Three consecutive years of falls in the FTSE 100 and the outbreak of war are hardly an ideal backdrop to the 2003 Isa season, at least not as far as most of the investment management industry is concerned. Deposit-based Isas appear set to win worried investors' funds, in spite of the recent fall in base rates to their lowest level since 1955. According to Inland Revenue statistics, in the first year of Isas (1999/2000) the cash component accounted for 43% of total investment, in 2001/02 its share was almost 60% and during the first six months of this tax year cash took over 68% of the Is...