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Information: Embargoed: 12.00 Monday 23 November 1998

Investors Unmoved by Market Turbulence

Investors in unit trust and OEIC PEPs are behaving identically this year to last year despite the market backgrounds being very different. Although net PEP sales were marginally down on the similar period last year, the similarity of the pattern is unmistakable.

Within PEP sales there has been, in recent months, a distinct shift from Equity Income funds to Corporate Bond funds, although bond fund sales are always strong at this time of the year.

More generally, both retail and institutional investors have shown an appetite for North American funds and shunned UK Smaller Companies funds. But on Europe there was a divide. Institutions sold back £29 million, whilst retail investors bought £30 million.

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

"People do appear to be responding to reason rather than fear in the current turbulence. They are staying in the market but looking more to bonds for income."

Summary table: October Unit Trust and PEP sales

Ends

For further comment please contact:

Clare Arber, PR Manager  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 October
Net Retail Sales                                   Net Institutional Sales
Other Fixed Interest, UK Growth        North America, Other UK Fixed Interest

Worst selling funds in October
Net Retail Sales                                    Net Institutional Sales
UK Smaller Co, Japan                          International Growth, UK Smaller Co

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 - 1991 to 1998

2. Sector summary - October 1998

3. Retail gross - October 1998

4. Retail repurchases – October 1998

5. Retail net sales -October 1998

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

Charts

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