Half of all ISA sales in January into equities

The ISA season has opened with a strong drive to global and UK equities, according to figures from Skandia.

UK fixed interest retains pole position as the single most popular asset class taking a quarter of all ISA sales on the Skandia Investment Solutions platform in January.

But equities from both the UK and overseas dominated, taking about half of all sales.

The UK was the most popular region for equities, with 18% of sales, followed by Global Specialist (10%) and Emerging Markets (7%).

Although equity sales showed a notable spread from around the world, in fixed interest the UK dominated with international fixed interest funds accounting for just 3% of the total.

In the top 10 funds chart, five slots were taken by UK fixed interest funds, with Invesco Perpetual Corporate Bond taking the number one position.

UK equity funds took two places, with cash/money markets and managed funds also making an appearance.

The tenth slot was taken by M&G Property Portfolio, the only property fund in the top ten. Overall, M&G funds took six of the top ten positions.

Graham Bentley, head of investment marketing at Skandia, says: "This year has started with the markets in a very different place to a year ago. Growing investor confidence, combined with the new ISA allowance that is already in place for the over 50s, we are expecting to see a strong ISA season this year.

"January's figures show although investors are still seeking the resilience of fixed interest funds, the fact that equities account for half of all sales shows that stock market confidence is returning.

"It is encouraging to see portfolio diversity from the spread of equities globally and that investors are not risking the mistake of putting all their ISA eggs in one basket."