ISA investment trusts fall out of favour

24 August 2005
The number of ISA investment trusts purchased over the last three months has plummeted, according to new figures.

Total purchases of investment trust ISAs through trusts and their managers fell by ten per cent to £19.60 million since April this year, the Association of Investment Trust Companies (AITC) has revealed.

The figures reveal a significant decrease from the £21.70 million spent on investment trust ISAs during the same period last year, and in the first three months of 2005.

Daniel Godfrey, director general of AITC, emphasised that the sector was still displaying positive returns, but better education about investment trusts was needed.

Mr Godfrey stated: "The investment trust industry continues to raise its game but the whole financial services industry needs to work together to rebuild trust in equity investment. Financial education must play a key role in this."

The total market capital of investment trust ISA schemes at the end of June 2005 was £554 million, the AITC revealed.

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