It was another strong year for the investment industry in 2005, with the value of assets in retail products increasing by 24 per cent.

The annual Irish Association Investment Managers (IAIM) personal investment survey shows that the value of money held by individual investors in retail investment products stood at €27.4 billion at the end of December 2005, up from €22 billion recorded at the start of the year.

The figures exclude managed pension funds but include Personal Retirement Savings Accounts (PRSAs).

The value of new business in 2005 was €2.8 billion, a significant increase of 51 per cent on the previous year.

Special Savings Incentive Accounts (SSIAs) accounted for 22 per cent of new business and 10 per cent of the total value of retail assets held by individual investors.

There was a 75 per cent increase in the take-up of unit-linked investments and a 30 per cent increase in the value of assets invested in unit-linked products.

Managed funds continue to be the most popular unitised fund option.

New money flowing into PRSAs amounted to €279 million, a 125 per cent increase on 2004, however the IAIM pointed out that the growth came from a low base.

Ann Fitzgerald, secretary general of the IAIM, said the IAIM was disappointed that the Minister for Finance, Brian Cowen, had not done more in the Budget and the Finance Act to encourage SSIA holders to re-invest their money in PRSAs and other pensions.

The IAIM said it would look at tracking the flow of SSIA money into PRSAs.