William Wright (Markets Insight, March 14) writes that the “British Isa
is a welcome step back to the future”.
I believe readers should be reminded that the benefits of tax-free returns are only relevant when the Isa delivers a positive investment performance.
About three years ago my wife and I invested in two Isas: I invested in the UK Smaller Companies segment, while my wife invested in the segment “Europe excl UK”. Unfortunately, I only occasionally review the performance of my investments.
Last month, I realised that my £20,000 investment had declined by more than 30 per cent while my wife’s European-focused investment had delivered a positive, albeit small return. Just for fun, I also checked the performance of some US-focused Isas and was shocked to see a 45 per cent gain!
I strongly believe that the UK government needs to focus on growth, creating the environment for businesses of all sizes to flourish and to deliver results that will improve their share prices and thus deliver a positive return (also for Isa investors).
Klaus Henke
Radlett, Hertfordshire, UK
