Record ISA sales boost for Foresters Friendly Society

Friday, March 1, 2013

Foresters Friendly Society experienced record sales for its stocks & shares with profits ISA during 2012 which saw sales increase by 160% (source: Foresters, Feb 2013).  Demand last year was driven predominantly by an appetite from advisers looking for an alternative option for their client's investment when compared to a traditional stocks & shares ISA. With all time low interest rates, the Foresters stocks & shares with profits ISA historic returns were favourable although past performance is not a guide to future performance.

Neil Armitage, Marketing Director at Foresters Friendly Society said: "Last year we saw a huge increase in demand in our stocks & shares with profits ISA from advisers for their clients.  In today's low interest rate environment, advisers are looking to add value to their clients' investments.  We believe that the Foresters ISA, which aims to provide annual bonuses and a possible final bonus to increase the value of the client's investments, gives advisers an attractive alternative.  The very nature of with profits and smoothing helps to cushion the consumer against the full effects of today's often volatile financial climate.  In addition, anyone taking out an ISA will have access to Foresters Extras, a range of member benefits at no additional cost which helps to differentiate the Foresters customer offering further."

The Foresters stocks & shares ISA aims to provide growth over five years or more.  An annual bonus and final bonus may be added to the ISA depending on how much profit the fund makes however the addition of bonuses is not guaranteed.   Investors in a Foresters ISA can contribute regular amounts from £50 per month, invest lump sums of a minimum of £250 or a combination of both to take their total investment to the current maximum £11,280 (£11,520 in the 2013/14 tax year) for a stocks & shares ISA. In addition, anyone taking out an ISA with Foresters is automatically eligible for its member benefits package which includes optical and dental grants, help with writing a will and discounts with high street retailers.