By Ruth Alexander Investment fund net Isa sales for 2000/01 are down 13.5% on the previous ye...
By Ruth Alexander
Investment fund net Isa sales for 2000/01 are down 13.5% on the previous year.
Autif's latest figures found that total net sales for the last tax year came in at £9bn compared with £10.4bn for 1999/2000.
In contrast the figures for the traditional Isa season since the new year are down significantly on the the equivalent period during 2000.
Net Isa sales for 1 January to 31 March 2001 are down 40% at £2.4bn compared to £4bn the previous year. From 1 January to 5 April 2001 the figure is £3bn compared with £5bn for the same period in 2000.
In March 2001 total net Isa sales were almost half the £2.3bn raised in the same period in 2000.
The first week of April 2001 raised £664m compared with £962m for the same period the previous year.
Clare Arber, PR manager at Autif, said: "Falls in stock market values and an uncertain outlook have deterred many would-be investors in the final quarter of the tax year. However, March and April aside, the sale pattern for the full year is not so dissimilar to previous years." Isa sales between 6 April 2000 and 1 January 2001 amounted to £6.9bn.
This compares favourably to the previous year's figures over the same period, which came to £5.49bn.
The Autif figures show that intermediaries concentrated much of their effort in selling outside the traditional run up to the end of the tax year.
They had net sales of £3.06bn during the period 1 April 2000 to 31 December 2000 compared with £1.91bn during the same period the previous year.
During the tax year 2000/01 direct sales forces increased their share of total Isa sales from 26% to 36% while 22% came direct from the public as against 23% for the previous tax year. IFA market share dropped from over 50% in 1999/2000 to 41% in 2000/01.
More than 2.6 million investment fund Isa accounts were opened in the 2000/2001 tax year, compared to 3.5 million in 1999/2000.
For March 2001 the most popular sectors for Isa money coming via the direct channel were the UK All Companies with £143m followed by £32.64m in UK Other Bond and £28.44m in Europe ex UK.
Via intermediaries the All Companies sector was also the most popular, at £162.58m, followed by Europe ex UK at £98.76m and UK Other Bond at £73.83m.
For institutions the most popular sectors were North America at £245.45m, followed by UK All Companies at £237.41m and Europe ex UK at £142.27m.
The past 12 months have also been notable for how technology funds have fallen out of favour with Isa investors.
On a gross basis total sales for tech funds were £171.17m in February 2000, £327.02m in March 2000 but then slumped down to £17.03m for February this year and £21.37m for March 2001. These figures are equivalent to a market share of total gross Isa sales of 15.96% for February 2000 and 13.66% for the following month. This February's figure is equivalent to 2.24% while for March this is 1.81%.
‘Important to have an anchor’
Report to be written by TPR
Lack of innovation for solutions
Some 2,000 consumers affected