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Information: Embargoed: 12.00 Monday 26 October 1998

Investment Funds Market continues to hold its strength in September

• September gross retail sales £1.4 billion, up 7% on last year

• Net PEP sales of £406 mn up from £400 mn in August and £404 mn last year

• Q3 regular savings plan sales up 6% on Q2

• PEP unitholder accounts up by 110,000

• Funds under management dip to £159 billion

Private investment fund holders in September remained resolute in the face of stock market uncertainty. While the FTSE 100 Index tumbled towards the 5000 mark, 110,000 new PEP accounts were opened, and total retail sales reached £1.4 billion, 7% up on September last year. Repurchases by private investors fell to a 7 month low.

Although overall net retail sales were down on last month, £334 million compared to £411 million in August, net PEP sales of £406 million were up on both last month and up on the same period last year. An increased interest in bond funds helped to push up the totals, with the UK Fixed Interest sector picking up almost 50% of the net retail whole and making it the most popular retail sector for the first time since December 1997.

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

"This latest set of figures is our strongest evidence yet that private investors buying investment funds, especially via PEPs, are committed savers, and understand that investment funds offer the key to long term financial security.

He continued,

"Higher sales of bond funds in the current climate also show that private investors understand how to use investment funds to balance a portfolio. The fact that regular PEP savers make up 17% of the quarter’s PEP sales is a striking testament to the increasing maturity of savers and highlights the industry’s responsiveness to their needs."

Gross institutional sales of £957 million were only very slightly down on last month, but record levels of repurchases from the UK Smaller Companies sector sank the overall net position to a negative. Repurchases in the Japan sectors also far out-weighed sales, to contribute to the low net total.

Regular Savings Plans: Q3 1998 (1^st July 1998 to 30^th September 1998)

Plan Holders:

Sales: £mn

Note: Figures represent totals for the quarter, not monthly totals within the quarter.

Summary table: September Unit Trust and PEP sales

	Sep 98	Aug 98	Sep 97
Total fund value	£158.7 bn	£166.2 bn	£162.4 bn
PEP fund value	£42.3 bn	£43.6 bn	£35.9 bn
Accounts	10.8 mn	10.8 mn	9.3 mn
Gross sales	£2,315.5 mn	£2,394.3 mn	£1,876.8 mn
Repurchases	£2,166.2 mn	£1,973.0 mn	£1,875.5 mn
Total net sales	£149.4 mn	£421.4 mn	£1.3 mn
Net retail sales	£333.6 mn	£410.9 mn	£405.8 mn
Net institutional sales	£-184.2 mn	£10.5 mn	£-404.5 mn
Net PEP sales	£405.9 mn	£400.1 mn	£404.0 mn

For further comment please contact:

Anne McMeehan, Director of Communications  AUTIF  0171 831 0898
Emma Weiss, Communications Manager  AUTIF  0171 831 0898
Susie Poote, Communications Assistant  AUTIF  0171 831 0898
Michael Quach, Head of Statistics  AUTIF  0171 831 0898
Dianne Archibald, Statistics Assistant  AUTIF  0171 831 0898

Notes to Editors:

Best selling funds in September
Net Retail Sales                                   Net Institutional Sales
Other Fixed Interest, UK Growth        UK Growth & Income, UK Growth

Worst selling funds in September
Net Retail Sales                                    Net Institutional Sales
UK Smaller Co, Far East Excl Japan    UK Smaller Co, Far East Excl Japan

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

1. Summary of total unit trust and PEP sales - 1991 to 1998

2. Sector summary - September 1998

3. Retail gross - September 1998

4. Retail repurchases – September 1998

5. Retail net sales -September 1998

6. Institutional business - gross, repurchases and net sales - September 1998

Charts

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