Isas dominated sales in April: IA

Isas dominated sales in April: IA

Platforms saw a rise in Isa sales at the end of the last tax year, enjoying a £200m year-on-year increase, the Investment Association has reported.

According to its monthly statistics for April, net retail sales of Isas through fund firms and platforms that provide data to IA – Cofunds, Fidelity, Hargreaves Lansdown, Old Mutual Wealth and Transact – were £1.4bn, compared with £1.2bn in April 2014.

Daniel Godfrey, IA chief executive, said: “Investors were taking advantage of the new tax-free allowance.”

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However, despite the popularity of platforms, total net retail sales – which includes direct investment, non-Isa and fund investment through intermediaries – suffered a year-on-year fall, from £3bn to £1.6bn, the figures showed.

The best-selling Isa sector for the five platforms was the UK Equity Income, with £192m net sales. This was followed by the Mixed Investment 20-60 per cent share sector, with £68m net sales, and property, with £64m net sales.

Net sales for the five platforms were £832m, with funds under management leaping from £168bn to £195bn.

Adviser View

Paul Holiday, financial adviser at Norwich-based GreenSky Wealth, said: “A lot of people might be recycling their pensions after the April freedoms, so money from small pots might have found its way into Isas. Following the election result people have been more bullish on equities, it seems.

“The pension freedoms may have also led to more people to self-invest, which could explain the increase of inflows into funds of funds. Advisers will also use them for small funds as a light-touch, no-ongoing-charge proposition.”