“Low rates of interest are being blamed, which would suggest more people would seek out the higher returns of stocks and shares. However, the amount invested in stocks and shares ISAs rose by just £1.2bn – a damning indictment of those of us in the investment industry,” he says.
And Millson believes this shortcoming is even more stark when demographics are considered.
“The demographics of ISA investments are frightening. Just 7% of ISAs held by under 35s have any stocks and shares,” he adds. “For women, it’s even worse – just 5% of women under 35 with an ISA hold stocks and shares.
“The young have the most to gain from long-term investments in stocks and shares, but we are clearly not giving them what they need to encourage them to invest.”
Similarly, James de Sausmarez, director and head of investment trusts at Janus Henderson Investors, says the fund management industry “must take partial responsibility” for the fact that “savers squander billions of pounds in extra income by sticking with cash instead of higher yielding alternatives like equities”.
He adds it is up to the industry to help inform savers how the products on offer are more suited to their investment objectives than sitting in cash.
