ISA sales in May 2002 amounted to £634 million, 14% down on the same period for last year according to figures released by the Investment Management Association (IMA). 39% of ISA sales were down to tied agents and salesforces, whereas IFAs sold 35% and direct agents sold 26%. The UK corporate bond sector has increased its share of all investment fund ISA sales to 19%. May is traditionally a quieter month than April mainly caused by the closure of the financial year. However, net retail sales of investment funds in May overtook those in May 2001 by 11%.
Clare Arber of the IMA said that it appears that the more experienced investors are the ones with the positive attitudes and are willing to look further than popular domestic or bond sectors. Novice investors seem to be less confident and more likely to invest into ISAs and more defensive sectors.