Consumers still appear to prefer to spend rather than save as net Isa sales fell by another quarter in June, according to the latest IMA figures.
Although overall investment funds under management climbed another 2% to £250bn compared with May, net Isa sales dropped 26% to £123m between May and June, says the Investment Management Association, taking the net fall on the year to 58%.
Total net retail sales of £159m in June this year are a long way behind the £870m of June 2003, though up on May’s £92m.
There were just 1.6m regular savings plans in the market in Q2, continues the IMA – 30,000 less than the first quarter of 2004 and just 1.3m Isas compared with 1.4m in Q1 and 1.5m Isas last year, says Richard Saunders, IMA chief executive.
"The last two months have seen the lowest net retail sales in 18 months. Particularly notable was a significant outflow from the UK All Companies sector in May and June, reversing the trend of the previous year or so," says Saunders.
Intermediaries were responsible for 69% of gross retail sales, but tied agents still sold the largest proportion of investment fund Isas – 46% - says the IMA.
Best selling funds in the market are still UK equity income funds while All Share funds are out of favour, suggests IMA data.IFAonline
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