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Published by: Datamonitor
Published: Jan. 8, 2003 - 83 Pages
Table of Contents
INTRODUCTION
What is the scope of the report?
Who is the target reader?
How is the report structured?
MARKET CONTEXT
What is the UK savings and investments market worth?
In the short term only deposits have seen positive balance growth
Over the medium term most mainstream investments have grown balances
What drivers have impacted the industry in recent years?
Events within the wider financial services arena have undermined people’s propensity to save
Market conditions make saving per se unattractive
What has been the effect on the composition of the savings market?
What has been the Government’s response?
Investigating the need for reform in the market for medium and long-term savings in the UK: the Sandler Review
Key recommendations stemming from the Sandler Review
What has been the industry’s response?
ABI endorses Sandler, but suggests it doesn’t go far enough
AITC offers a warm welcome to Sandler’s proposals
IMA adopts a more cautionary tone
IFAs believe Sandler will erode their competitive position
INDIVIDUAL SAVINGS ACCOUNTS (ISAS)
Segmentation according to type of ISA
After a slow start, mini ISAs now dominate total ISA sales
A flight to the safety of cash is driving mini ISA growth
Average ISA subscriptions have been falling since 2000
Repurchases among unit trust and OEIC ISAs are increasing
Customer behavior
The importance of direct channel distribution is growing
Competitive dynamics
Major banks account for an increasing proportion of ISA sales
Banks may dominate cash ISA sales, but they rarely offer the best deal
Within equity ISAs, a weak correlation exists between advertising spend and direct channel sales
A third of all equity ISA funds under management are accounted for by the top five fund managers
THE FUTURE DECODED
Introduction to the savings and investments model
Constant assumptions across all scenarios
Scenario 1: economic stability through to 2006
Scenario 2: economic strength
Scenario 3: economic malaise continues to 2006
APPENDIX
Supplementary information and data tables
Supplementary data
Research methodology: forecasting
Further information on Datamonitor’s savings and investments forecasting model
Relevant reading
Future reading
Relevant links
SPP writing team
AbstractIntroduction
UK Individual Savings Accounts 2003 provides the reader with a comprehensive guide to the UK ISA market. Sourced from the Datamonitor report UK Savings and Investments 2003, it gives readers the facts and figures for both the equity and cash ISA market. In addition, the brief provides forecasts of ISA funds to 2006 under three economic scenarios.
Scope
UK retail investors. Figures from April 1999 onwards are provided, with specific examples of ISA products taken as of October 2002
Cash and equity ISAs. Insurance ISA statistics are shown but not discussed due to the negligible value of insurance ISA sales
Report Highlights
With a foot in both equity and deposit markets, the experience of ISAs since their launch in April 1999 offers an interesting insight into investor sentiment. Cash ISAs have dominated, and within cash ISA sales, banks have taken an increasing share - yet banks generally fail to offer the best ISA rates. This briefing looks at these issues before concluding with Datamonitor's forecast of the UK savings and investment market, including ISAs, to 2006 under three economic scenarios.
Reasons to Purchase
Provides the essential statistics required to evaluate how your business is performing versus the market as a whole
Provides independent forecasts of the UK savings and investment market based on different economic assumptions, aiding planning
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