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CoreData’s Digital Intimacy Report finds people are more likely to take action when allowed to experience the brand on their terms and not have messages pushed onto them. A quarter’s response to online marketing depends on how much they trust the brand in question.

Stocks and shares Isa ownership among women is low. If levels of stocks and shares (S&S) Isas are brought in line with those of males, the industry could see an estimated pot of £8.83bn flowing into these products.

24.5% of people were primarily motivated to start thinking about estate planning by starting a family, 23.1% claimed they had simply reached a certain age, and 14.3% were encouraged to think about estate planning by financial advisers.

28.8% of women and 14.3% of men claim their most trusted adviser on estate planning issues is a family friend.

25.0% of 45-54 year olds and 33.3% of 65-74 year olds say they openly discuss wealth in their families, as well as 61.5% of the 35-44 age group.

Investors believe UK and European shares will dominate the first half of 2014, with sentiment shifting heavily in their favour at the expense of both emerging and frontier markets.


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Investment Funds ISA

January 2012

[ View the full report ]

Since the ISA wrapper was introduced in April 1999, the structure has gone from strength to strength and gained popularity among the investing public, allowing access to investment returns free of capital gains tax.

The tail-end of the 2010-2011 tax year saw a rush of investors injecting money into ISAs with these funds posting net sales of £956m between 1 March and 5 April. These last minute ISA buys led to the highest net sales recorded during this period of the year since 2002.

Investors can choose to save half of their ISA allowance (£10,680 for the 2011-2012 tax year and £11,280 for the following year) in a cash product and invest the other half in stocks and shares. They can also decide to invest their whole allowance in stocks and shares.

Although they could, in theory, buy any listed company’s stock, investors, more often chose to access the financial markets through financial products, such as managed funds, OEICs and investment trusts.

The investment ISA universe caters for all types of investor and this brings with it an added appeal. Some products suit first-timers looking for something conservative while others are more appropriate for more experienced investors who want long-term capital growth. Even investors on the hunt for a more niche or risky exposure can find a product to meet their needs and also fit into the ISA wrapper.

Furthermore, planned regulation changes can ensure that any failure of a product provider has a reduced negative impact on investors.

In December, the treasury announced plans to allow ISA savers to re-invest their assets should the product provider (be it a bank or an asset management company) collapse.

At present, any investment lost due to failure of the provider is counted as part of the yearly ISA allowance. Under revised rules, savers should be able to invest an amount to that lost without affecting their allowance.

Investment ISAs serve as an introduction for investors to the world of fund management, all through a wrapper with which they are familiar and which also provides tax benefits.

These products allow fund managers to begin to build brand awareness among investors and should they be satisfied with their investment ISA, this group of savers may consider extending the fund manager’s mandate to include other financial products.

Therefore the aim of this study is to increase understanding of those investors who currently invest in managed fund ISAs and who plan to allocate more money to this product type going forward.

This report:

  • Classifies the buyers of investment ISAs, covering the demographics and behaviour of this group of investors
  • Identifies the appetite for different types of investment ISAs, including asset classes and regions
  • Forecasts expected asset flows into investment ISAs over the coming year
  • determines how investors buy investment ISAs; if they go direct or through an adviser, and if they plan to take the same route when making future allocations?
  • Illustrates the likelihood of this group allocating new money into these products
  • Ranks the asset management companies which investment ISA savers think are the most capable.

This report reveals the psychographic typology within this part of the market and identifies any clear subsets that exist within including detailed information as to their attitudes and behaviours relating to:

  • How they buy and form trust with financial services providers;
  • The products and asset types they hold;
  • The size of the investment ISA universe and its attraction in terms of product holdings, investment amounts and investor numbers;

Through careful data collection CoreData classified investors into distinct groups based largely on their answers to a broad range of carefully constructed behavioural and attitudinal questions. Responses were taken from several hundred sophisticated investors sourced from an industry investor database of approximately 1 million active investors. Online questionnaires were distributed throughout December 2011 to facilitate data collection.

This report arms product manufacturers, advice firms and marketers with the needed insight to fully understand what warms the buyers of investment ISAs to certain factors within an offering and therefore the best strategies to tailor their products to meet the needs of these investors.

The research delivers product providers an in-depth understanding and quantifiable categorisation of the various types of individuals who save through investment ISAs within the UK financial services market today.

It also provides an estimate of the future growth of the investment ISA market in terms of assets investors plan to allocate to these products.

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