Isa sales improved ahead of tax year end

Retail investment sales appear to picked up as the latest statistics from the IMA suggest net retail sales increased by over 40% last month.

Latest data from the Investment Management Association reveals net retail sales grew 42% in February 2004 to £716.7m compared with £505.1m in January, and were over three times more than £228m of net retail sales in February 2003.

There was one surprising anomaly as a single transaction worth around £1.9bn had a major impact on net institutional sales and sent figures shooting into the red.

However, there was a small recovery in the Isa market, as Isa funds now stand at £32.1bn thanks to net sales worth £209.5m in February 2004 - Isa repurchases climbed to £222.3m – which is £26m more than in January 2004.

Retail funds in February 2004 were still dominated by interest in UK all companies and UK corporate bonds sectors, while the UK smaller companies and UK equity and bond income were least popular with investors.

Around 60,000 new Isa accounts are thought to have been opened between January and February this year.