Investors take up greater Isa sales in March

Isa sales for 2003-04 were around 15% higher in March than the previous year to £496m and net retail figures are up by almost three-quarters on last year, according to the latest statistics from the IMA.

Although the total of investment funds under management dropped a fraction in March from £247bn to £246bn, funds under management are 31% higher than March 2003 and have increased 41% on last year to £32.4bn, says the Investment Management Association.

That said, sales have still got a long way to go to meet the high sales gained in 2000, before the dotcom bubble burst.

Net retail sales were also 13% higher in March to £852m than in February and 15% higher than last year, while net Isa sales are twice that seen in February, state March IMA figures.

All Companies funds were still the preferred investment selection as the UK All Companies sector accounted for 22% of gross retail sales and 34% of gross Isa sales, closely followed by UK equity income funds (14%) on the retail front and UK corporate bonds within the Isas market (17%).

Worst selling funds in the net retail sector are still thought to be among the North American and Europe (ex UK) bracket.

Intermediaries are still the most popular distribution channel in March as 67% of gross retail sales were conducted through IFAs, however, tied agent sales forces sold the bulk of Isas (36%) followed by IFAs (31%).