F&C ASSET MANAGEMENT PRESS RELEASE
1 JULY 2014 NISA investors could more than double their £15,000 in ten years
Commenting on the move from ISAs (Individual Savings Accounts) to NISAs (New ISAs), Rob Thorpe, Head of Consumer, at F&C Investments, said: "This is welcome news for hard working savers, who will benefit from the increased allowance and further tax protection on their savings."
Half of Britons (47%) find investments confusing and hard to understand, according to F&C's Annual Investor
Report. (According to research conducted by YouGov, of 2,009 people in May 2014)
Rob Thorpe continued: "Like shoppers in a giant supermarket, savers can suffer from paralysis by analysis due to the myriad investment options available to them. The move to the single NISA simplifies decision making for savers who want to retain some savings in cash, and some in investments.
"The flexibility of being able to switch back to cash ISAs at any point, without losing tax benefits, may lead to an increased number of people investing a proportion of their savings into stocks and shares, particularly in the current low interest rate, high inflation environment. Our research has shown that investing as little as £50 a month in a NISA, versus a cash ISA, could have a significant impact for savers, particularly over the long term."
The F&C FTSE All Share Tracker fund returned 9.7% average annual return over three years, 13.9% average annual return over five years and 8.1% average annual return over the last ten years. All returns are net of charges to 27/6/2014.
The below outlines how much an investor could gain by putting away a regular amount each month in a cash or an investment ISA, according to F&C Investments.
Over 10 years | |||
Regular amount: | Investments** Potential 8% return | Investments** Potential 5% return | Cash* |
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£15,000 lump sum | £33,294 | £24,705 | £15,768 |
£50 a month | £9,208 | £7,796 | £6,154 |
£100 a month | £18,416 | £15, 592 | £12,308 |
Over 25 years | |||
Amount invested | Investments** Potential 8% return | Investments** Potential 5% return | Cash* |
£15,000 lump sum | £110,102 | £52,219 | £16,996 |
£50 a month | £47,868 | £29, 899 | £15,981 |
£100 a month | £95,736 | £59,799 | £31,962 |
*0.5% compound interest
**These returns are hypothetical future outcomes. Real returns will be different and will be subject to the relevant fees which are not deducted in this projection as they vary by fund.
The ongoing charges on the F&C Stocks and Shares ISA investing in the F&C FTSE All Share Tracker Fund are 0.36% with no initial charges or product fee.
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Director, Communications Richard.janes@fandc.comTel: +44 (0) 20 7011 4298
Please note: Tax can be a very complicated area and much will depend on individual circumstances meaning it often makes sense to employ the services of a professional financial adviser and all tax rules may change in the future. Past performance is not a guide to future performance and the value of all stock market investments can go down as well as up and you may not get back the amount originally invested. About F&C Investments
F&C is focused exclusively on managing money for its clients. It manages assets for a combination of insurance clients, institutional investors, intermediaries and private individuals. F&C invests across all major asset classes - equities, fixed income and property - and has specialist expertise in asset allocation, alternative
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investments, liability driven investments, multi-manager, private equity funds and Environmental Social and
Governance (ESG) Investing. The F&C Group includes F&C REIT, a global real estate asset manager.
F&C has a strong footprint in the U.K. and the rest of Europe with assets under management of approximately
£83 billion as at 31 March 2014. F&C has a rich heritage that dates back almost 150 years and can be traced back to the founding in 1868 of the Foreign & Colonial Investment Trust.
F&C is part of Bank of Montreal (BMO) Global Asset Management, a global investment manager with more than US$269 billion in assets under management as of 31 December 2013. BMO Global Asset Management is a part of BMO Financial Group (NYSE:BMO), a fully diversified financial services organization with C$582 billion total assets and more than 45,500 employees as of April 30, 2014.
Disclaimer
Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. The information, opinions estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time. F&C Group Companies may from time to time deal in investments mentioned herein on behalf of their clients. The source of information in all graphs is F&C unless otherwise stated. F&C Management Limited is authorised and regulated by the Financial Conduct Authority FRN: 119230 F&C Management Limited is a member of the F&C Group. The F&C Group is wholly owned by BMO Global Asset Management (Europe) Limited, which is itself a wholly owned subsidiary of the Bank of Montreal. F&C, the F&C logo, REO and the 'reo' logo are registered trademarks of F&C Asset Management plc. F&C Investments and the F&C Investments logo are trademarks of F&C Management Limited. © Copyright F&C Management Limited 2014. All Rights Reserved. Neither this document nor any part of it may be reproduced by any party whether by photocopying or storing in any medium by electronic means or otherwise without the prior approval of F&C Management Limited.
F&C Management Ltd accepts no liability in respect of the information or any views expressed herein which may be subject to change without notice at any time.
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