Investment company savings schemes “remain as compelling today” for consumers as they were 30 years ago, the communications director for the Association of Investment Companies has claimed.
Speaking about the 30-year anniversary of the first scheme, launched by what is now F&C Investments, Annabel Brodie-Smith said: “Investment company savings schemes remain as compelling today as ever - even more so given the huge choice and diversity now on offer.
“Looking at the competitive charging structures of many saving schemes, it is easy to see why,” she added.
Piers Currie, head of brand for Aberdeen Asset Management, said the company’s in-house savings plans now represented £1bn of investor assets by value.
He said: “Private investors have a great range of services on offer in this space, typically at very low cost.
“Manager savings schemes, invented at F&C 30 years ago, still have a great role to play for investors who want to receive yearly reports, fact sheets or engage with boards at annual general meetings or with a customer services team online or by phone.”
He added: “Manager plans have risen enormously in recent years on the same tide as the direct platforms such as Hargreaves Lansdown, Alliance Trust Savings and the reformed execution-only services online. These combined can now account for 70 per cent of all share buying of investment trusts by value.”
Simon Cordery, F&C Investments head of investor relations and business development for investment trusts, said more than 170,000 accounts had opened with the company in the past 30 years covering regular savings, Isas, child trust funds and junior Isas.
He said: “Almost £2bn of private individuals’ savings have built up over the past 30 years.”
Simon Crinage, head of investment trusts for JPMorgan Asset Management, said: “Investment trust savings schemes are a great way to save for children, grandchildren, a lifetime goal, a sum for retirement, building up a nest egg or for a rainy day.”
Adviser view
Claire Walsh, chartered financial planner for Brighton-based Aspect 8, said: “As a nation we are wealthier than 30 years ago. Before, it would be just the wealthiest people investing, but now a much broader section of society does it.”
