Fidelity FundsNetwork predicts record ISA season in 2007

Fidelity FundsNetwork, the UK’s leading investment platform, is predicting a buoyant ISA season in 2007, with ISA fund sales via the platform from advisers and investors likely to be up by over 30% on 2006.

FundsNetwork is experiencing increased web volumes of up to 40% in the run-up to the 2007 ISA season. Thousands more advisers and consumers are logging on to check the performance of their existing investments, analyse their portfolios and assess potential new fund purchases. This year, IFA firms are well-advanced in planning for the final quarter of the tax-year, with ISAs as well as pensions likely to be high on clients’ agendas.

The platform expects the increased interest to translate into healthy ISA sales in 2007. FundsNetwork is the No.1 funds platform for ISA investors with over £6.1bn in ISA/PEP assets under custody.

Richard Wastcoat, UK Managing Director, Fidelity International, comments: “The build-up to the 2007 ISA season is indicating that fund sales via this flexible wrapper are set to out-strip those of 2006. That momentum was given a further boost by the Chancellor when he confirmed the Government’s continued commitment to ISAs as well as confirming new switching rules enabling those in previous year Cash ISAs to consider moving into Stocks & Shares in the near future.

Wastcoat continues: “With the renewed confidence in the future of ISAs, and assuming stockmarket conditions remain relatively stable, we are confident that investors will have been positively encouraged to take better advantage of the tax benefits ISAs clearly offer, alongside other key tax wrappers such as SIPPs and investment bonds.”

Looking ahead to the hottest sectors of 2007, FundsNetwork’s view is that the specialist sector will continue to dominate, after 2006 data revealed that investors and advisers are continuing to use property and emerging markets funds. The UK equity income sector is also likely to remain popular, being a core sector for investors looking for a steady combination of income and capital growth. The typical FundsNetwork account now holds 4 different funds, indicating investors see the real benefits of diversification via the fund platform.