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Embargoed: 12:00pm: Monday 29 March 1999

Soaring PEP Sales Boost Industry Figures for February

• Total gross PEP sales up 63% on February 1998

• PEP net retail sales up 106% on January 1999

• Unit trust and OEIC PEP funds under management top £52 billion – up 29% on February 1998

• PEP holder accounts stand at 9.21 million

Predictions of a bumper final PEP season appear to have been fully justified. Sales for February climbed ever higher, whilst anecdotal evidence for March suggests that there is no let-up in the momentum. Gross PEP sales rose by 63% to £1.095 billion, with net PEP retail sales (£627.6 million), an increase of 106% over comparable figures for the previous month (£304.2 million), and 52% up on February last year (£412.2 million).

In spite of a slip in the number of PEP holder accounts last month, the figure for this month 9.21 million, suggests this was just a temporary ‘blip’ in an otherwise steady ascent. Any indication that there is a decline in the growth of take-up is most likely accounted for by some investors consolidating their accounts, some ‘topping-up’ their accounts with existing suppliers and satisfied investors returning to previous years’ suppliers for their 1998/99 final PEP contribution.

Anne McMeehan, Director of Communications at the Association of Unit Trusts and Investment Funds (AUTIF), commented:

"There is an increasingly marked concentration in the PEP market. It is surprising just how much business is going to a relatively small number of suppliers. What will be interesting to look for in the months ahead will be whether this trend continues with the advent of ISAs, or whether their arrival gives a new lease of life to a broader section of the industry."

Summary table: February Unit Trust and PEP sales

For further information please contact:

Anne McMeehan, Director of Communications, AUTIF, 0171 831 0898
Clare Arber, PR Manager, AUTIF, 0171 831 0898
Michael Quach, Head of Statistics, AUTIF, 0171 831 0898

Notes to Editors:

Best selling funds in February

Net Retail Sales
Other UK Fixed Interest, Europe

Net Institutional Sales
Other UK Fixed Interest, UK Growth

Worst selling funds in February

Net Retail Sales
UK Smaller Companies, Japan

Net Institutional Sales
UK Growth & Income, Europe

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 - 1992 to 1999

2. Sector summary - February 1999

3. Retail gross - February 1999

4. Retail repurchases – February 1999

5. Retail net sales - February 1999

6. Institutional business - gross, repurchases and net sales - February 1999

Charts

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