|
For
Immediate Release: Tuesday 20 May 2003
CONSUMERS
REMAIN CALM IN THE FACE OF STOCK MARKET VOLATILITY
Results
of IMA’s annual consumer survey
Stock market volatility has not
produced panic selling amongst investors according to the
annual Unit Trust Information Service survey conducted by
the Investment Management Association. 52% of the survey’s
respondents indicated that periods of market volatility were
a time to hold onto their funds whilst 44% took the
opportunity to purchase further units.
Unsurprisingly, participants indicating
that they had already invested in unit trusts or unit trust
ISAs for the 2002/2003 tax year was down to 18%, the lowest
figure since the survey began. Despite this apparent fall in
confidence however, the amount of money people were
investing, increased to an average of £6,149 for lump sum
investors (£4,610 in 2001) and an average of £125.10 a
month for regular savers (£98.3 in 2001).
The survey also highlighted the growing
importance of ISAs, with more investors indicating that they
held ISAs this year and contrary to recent Government
reports, the report outlines that ISAs are indeed
“benefiting the many and not the few”. Of those who had
already invested in an ISA for the 2002/2003 tax year, 63%
belonged to basic rate tax group compared to only 29% from
the higher rate bracket. (Lower rate accounted for 8% of
responses)
Helen Stephenson, Communications
Officer at the IMA commented:
“It is
encouraging that even though the number of new investors has
fallen, contribution levels remain strong and those already
invested are not rushing to cash in.
It is
also pleasing to note that ISAs are indeed reaching a broad
spectrum of investors, contrary to the IPPR’s report, and
we will continue to lobby the Treasury into reconsidering
the removal of the ISA tax credit.”
Other
points of note this year included the continued prevalence
of past performance in investors’ choice of management
company and the increasing importance of banks and building
societies as a means of ISA distribution.
UTIS report attached
- hard copies available on request
-
Ends -
For
further information, please contact:
Helen
Stephenson, Communications Officer, IMA, 020 7831 0898
Clare
Arber, Head of Communications, IMA, 020 7831 0898
Notes to
Editors:
For
information on the IMA’s stance on the removal of the ISA
tax credit on dividend distributions please refer to the
press release dated 24 March 2003 which is
available from the IMA website at www.investmentuk.org/press/2003/20030324.asp.
If
a copy of the survey is not attached, it can be found on the
IMA website, www.investmentuk.org
attached to a copy of this press release.
This
is the ninth successive year that the survey has been
commissioned by the Association. The survey was conducted by
Continental Research using 508 interviews which were carried
out between November 2002 and January 2003.
UTIS
is the Association’s dedicated, 24-hour information line,
handling all the public information booklets produced by the
IMA. Readers should call +44 (0)20 8207 1361 for the
range of free, generic guides. Alternatively, full details
are available from the IMA website.
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
|
