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Information: Embargoed Noon Monday 29 June 1998

May Unit Trust Funds under management remain buoyant at £191 billion

• May gross PEP sales £951 million - up 15% on May ‘97

• PEP accounts up 3.5% for the month with unit holder accounts up 4.8% on April ’98

• European sector accounts for 22% of industry gross sales

In spite of an increasing tension in world stock markets unit trust and PEP sales remained robust throughout the month. Figures for May are traditionally lower than April’s, reflecting end of tax year activity. Net PEP sales of £696 million for the month compare with £1.67 billion for April, but are still 9% ahead of the £637 million recorded in May last year.

Both institutional managers and IFA clients continued to buy heavily into European funds, with a net total of over £650 million being invested in May. By contrast institutions switched out of the International Growth sector. In the retail market the PEP related sectors continued to dominate with Bond PEP’s featuring high in sales achieved by both IFA’s and companies’ salesforces.

Philip Warland, Director General of the Association of Unit Trusts and Investment Funds (AUTIF) commented:

" The move into European funds, which have performed particularly well recently, demonstrate why the Government is right to allow wide diversification in PEPs and, in the future, in ISA’s."

"It is interesting too that whilst many stock markets have been volatile recently it has not deterred investors from continuing to save for the future in equities. For the genuinely long-term saver this remains the best thing to do."

Summary table: May Unit Trust and PEP sales

For further comment please contact:

Philip Warland, Director General  AUTIF  0171 831 0898
Susie Poote, Communications Assistant  AUTIF  0171 831 0898
Dianne Archibald, Statistics Assistant  AUTIF  0171 831 0898

Notes to Editors:

Best selling funds in May
Net Retail Sales                               Net Institutional Sales
UK Growth, Other Fixed Interest     Europe, North America

Worst selling funds in May
Net Retail Sales                               Net Institutional Sales
Japan, Far East Excl Japan               Intl. Growth, Commodity & Energy

PEPs:
The tables detailing stocks and flows via PEPs relate to plans operated by unit trust managers only and not to plans operated by all PEP Plan Managers.

1. Summary of total unit trust and PEP sales - 1990 to 1998

2. Industry Sector Totals – May 1998

3. Gross Sales By Distribution Channel (Totals) – May 1998

4. Repurchases By Distribution Channel (Totals) – May 1998

5. Net Sales By Distribution Channel (Totals) – May 1998

6. Retail versus Institutional Net Sales (Totals) – May 1998

Charts

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