By Investment Week staff Jupiter and Fidelity are both on course to take in excess of £1bn each duri...
By Investment Week staff
Jupiter and Fidelity are both on course to take in excess of £1bn each during the first year of unit trust Isas while Aberdeen is well placed to be the third largest provider.
Aberdeen's gross unit sales during the first Isa season have increased by about 140% from last year's equivalent Pep figures, Jupiter's sales have risen by 15% and Fidelity's sales have increased by 25%.
One of the main reasons why Aberdeen's sales have increased so dramatically is because of the wider investment qualifications Isas have, according to Richard Wilson the marketing manager at the group. This has helped boost sales via its technology unit trust
The group's Isa sales for this tax year are on course to reach £800m compared with gross Pep sales in 1998/99 of £330m.
Steve Glynn, sales director at Jupiter believes it would have been hard for Jupiter to achieve the same kind of Isa sales growth as Aberdeen. He said: "Last year our Pep sales market share via IFAs was 20% this year it is 24%. Once you get a substantial share it is very difficult to double it.
"What I am pleased about is that our Isa sales have come from a wide range of our funds from UK Growth to Global Opportunities. We have not relied upon one fund for the bulk of our Isa sales."
He added that one fund which had not been a big seller was Jupiter Corporate Bond, because market sentiment is towards growth and technology funds. Ironically, Jupiter Monthly Income, which raised £8m, has seen a portfolio rise of 10.25% since launch on 1 March while Jupiter Global Technology, which raised £130m, has achieved no absolute growth since its 1 March launch due to market volatility.
Schroders has seen a fall in gross sales compared with the last tax year as a result of underperformance in its flagship funds such as UK Enterprise, which has poor three year performance numbers, ranked 192 out of 227 in the UK All Companies sector. It expects gross Isa sales during the 1999/2000 tax year to be around £79.35m compared with £145.86m in Pep sales for the previous tax year.
Net sales for the same time periods are up from £29.62m for the 1998/99 tax year to £77.64m for the 1999/2000 tax year with total redemptions down from £116.24m in 1998/99 to £1.71m during 1999/2000.
INVESCO expects gross Isa sales in 2000 to be around £460m, the group is currently receiving between £15-20m of Isa money daily. It estimates this will be around £38m short of its Pep sales figure for 1998/99.
Mike Webb, chief executive of INVESCO UK retail, said: "Our Isa sales got off to a slow start during the second and third quarters of last year sentiment moved away from European assets and our Europe fund is one of our big sellers. Our sales have now accelerated and we are now doing better than many of our competitors."
SG Asset Management is forecasting gross Isa sales to be £55m, while Newton and Threadneedle anticipate gross sales to be £395m and £190m respectively.
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