Barclays Stockbrokers equity ISA sales increase

Interest rates have fallen to record lows this year, and investors have to work harder to get returns. As a result, Barclays Stockbrokers has seen new ISA account openings increase significantly (up by 37%) in the 2008/9 tax year end period compared to the same time last tax year. Existing investors are also ensuring that they make the most of their tax free allowance; top-ups (additional contributions into existing ISA accounts) in the tax year end period have increased by 69% compared to last year. Barclays Stockbrokers has seen assets under administration (AUA) invested in ISAs for the 2009 tax year end period increase by 150% compared to the previous year5. This trend looks set to continue into the new tax year, with 85% of investors planning to invest in an ISA in the 2009/10 tax year.

Barclays Stockbrokers has seen clients consistently adopt a bullish strategy throughout the market volatility of recent months, with 61% of share trades being purchases and 39% sells. This has continued to be driven extensively by trading in the banking and financial sector.

Barbara-Ann King, Head of Investments at Barclays Stockbrokers, commented: "Whilst markets have continued to be extremely volatile, and some investors have taken advantage of this, many others have been more cautious. As interest rates have languished at record lows, cash is not viewed by many as a viable alternative. It is encouraging that our clients have taken the bull by the horns and made sure they take advantage of not only their tax free allowance but also the potential returns that can be gained from investing in equities. It is also very encouraging that our investors recognise the benefits offered by ISAs and so have actively taken up their allowances in order to maximise the returns that they generate.

"In the past year we have increasingly seen our clients take an ‘Instividual' approach to investing, whereby they are taking their investing decisions into their own hands and proactively trading to take advantage of market volatility. We expect this trend to continue as markets continue to fluctuate this year."