Investors actively manage Corporate ISAs trading three times per annum

Fri 27th July 2012

Lessons can be learned by pension schemes

Equiniti, one the UK’s leading providers of Corporate ISAs, has undertaken analysis of the Corporate ISA market and found that employees with Corporate ISAs are managing their investments with increasing regularity and are actively participating in their schemes. 

Equiniti, which currently administers over 22,000 employee Corporate ISA accounts with nearly £300 million invested, has found that employees are averaging three investment decisions (trades) per year, and trading on average £317 per year as they are committing to Corporate ISAs in increasing numbers. This is in stark contrast to many members of corporate pensions who adopt a much more passive approach to managing their investment.

Regular deposits are also growing, moving from an average of £99 to £100 per employee, per month over the past 27 months, which although low is a significant in the current economic climate.

The mean portfolio size of corporate ISAs that Equiniti manages is currently £13,337, which is approximately half the size of the average defined contribution (DC) pension. 

Mark Taylor, Director of Investment Services at Equiniti said: “While Corporate ISAs are not an alternative to pensions and employers have a duty of care, and shortly a legal duty, to offer pensions, there are potentially lessons to be learned about employee engagement. In the future we increasingly expect Corporate ISAs and corporate pensions to be standard employee benefits as employers look to support both the need for retirement planning and also the short to medium term savings needs of employees.”

Notes to Editor:

Link to Annual Review of Corporate ISA Market