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TNS Survey Shows ISA Investors Positive
5/4/01



Confidence in the technology and IT sectors amongst investors in equity ISAs remains high, in spite of recent stock market setbacks. This is according to the latest findings of a Taylor Nelson Sofres (TNS) Finance survey conducted for Interactive Investor International plc.

The survey reveals that, amongst those who already have or are likely to buy an equity ISA in the current tax year, a quarter (26%) predict that software and computer services will be one of the top performing sectors in the next financial year. Three out of 10 (30%) believe that telecoms will do well, while 23% foresee a strong performance amongst IT hardware companies.

This optimism contrasts with predictions for the future performance of the aerospace and defence sector (13%), transport (11%), tobacco (8%) and automobiles (2%). Overall investor confidence was confirmed by the survey, which found that only a quarter (26%) of existing or potential investors feel that equity ISAs are not a relatively safe way to invest for the future. In addition, half (51%) agree that they prefer using an equity ISA rather than other alternatives available such as cash ISAs, unit trusts or savings accounts.

  • Other key findings include:
    • Of those already with or likely to buy an equity ISA, less than one in 10 (9%) prefer a tracker fund. By contrast, some 91% opted for a managed fund or a managed/tracker mix.
    • Less than a quarter (23%) prefer an equity ISA as a means of saving in the short-term, compared with 45% opting for a cash ISA for this purpose.
    • The sectors most strongly tipped for strong performance in the next financial year by equity ISA investors are pharmaceuticals (53%), health (43%) and banks (39 %). Amongst those least favoured are automobiles, steels and other metals (both 2%) and forestry and timber (1%).

    Andrew Glazier, Director, of TNS Finance, commented, "These findings provide a strong indication that general confidence in the equity ISA marketplace remains high, in spite of recent "scares". The fact that this research was undertaken during one of the worst weeks for the UK stock market for some years suggests that many investors are prepared to take a longer-term view rather than adopt a knee-jerk reaction. In addition, it is encouraging that many investors are prepared to demonstrate their confidence in some of the newer industrial sectors in spite of considerable criticism of their performance amongst analysts and the media."

    This survey of the equity ISA marketplace in Great Britain was undertaken online amongst 1,780 registered Interactive Investor users (of which 898 already have an equity ISA) between 15 and19 March 2001. All were over 18 years old with at least £10,000 in savings.




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