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Information: Embargoed: 12.00 Monday 21 December 1998

INCOME SEEKERS DRIVE HIGH NOVEMBER FUND SALES

• November net retail sales leap 68% to £586 million

• Net PEP sales of £386 million up from £358 million

• Funds under management rise 5% to £178 billion
  
  
  Gross Sales

• Retail sales of investment funds in November surged ahead to reach a record high for this time of year. The gross retail total of £1.5 billion, £200 million up on last month, was boosted by strong sales outside PEPs. Gross PEP sales of £664 million, although also significantly up on last month, contributed a lower than average 43% of the overall retail total.

Income Search

• Retail investors, particularly buyers of UK funds, looked for income. They invested a total of £258 million in the UK corporate bond fund sector, including £124 million of corporate bond PEP sales. In addition, intermediaries placed above average levels of business in both UK equity income as well as international fixed interest funds; while company salesforces almost trebled the level of investment in UK equity and bond funds compared to last month.

New Investment

• Intermediaries accounted for £743 million, or 49%, of the overall retail inflow. International investment was a particular focus. There was notable enthusiasm for European and North American funds; while international fixed interest funds attracted £32 million of IFA investment, more than double last month’s £15 million total.

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

"Investors in November maintained confidence in the investment fund market. With interest rates in the UK and further afield on a downward path, surplus cash looking for income has taken advantage of the wealth of opportunities in both bond and balanced funds."

Institutions in November also concentrated on international markets. European and North American fund sales accounted for over half of the month’s institutional net total of £260 million.

Summary table: November Unit Trust and PEP sales

For further comment please contact:

Philip Warland, Director General AUTIF  0171 831 0898
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

Notes to Editors:

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

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

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 - November 1998

3. Retail gross - November 1998

4. Retail repurchases – November 1998

5. Retail net sales -November 1998

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

Charts

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