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Embargoed: 12:00pm:   Monday 26 April 1999

PEPs bow out on all-time high

• Net PEP retail sales in March pass £2.5 billion (£1.5 bn March 1998)

• Net PEP retail sales for Q1 1999 up 58% on same period last year to £3.5 billion (£2.2 bn Q1 1998)

• Net PEP sales for the first week of April 1999 £624 million

• Net PEP investment in Q1 to 5 April 1999 was £4.1 billion (£2.9 bn 1998)

• Total PEP sales for the year April 1998 to March 1999 of £12.9 billion (£8.9 billion net)

• Total net PEP sales for the year 6 April 1998 to 5 April 1999 £8.9 billion

• Total PEP funds under management £56 billion

PEP sales lived up to expectations with a record £2.5 billion in net sales for March alone. For the quarter to 5 April, net sales topped £4.1 billion. Sales for the first week of April at £624 million was slightly less than last year (£652 million), possibly a result of the four day Easter break and Post Office delivery problems.

Sectors
All sectors benefited from this flow of funds, but the UK was the outright winner with over £1.78 billion pouring into UK funds. Corporate Bond PEPs are still favourites with the buying public too. Almost £670 million was invested in UK Other Fixed Interest, £452 million in UK Growth and £320 million in UK Growth & Income funds. Europe was another principal beneficiary, with sales of £601 million.

Unitholder Accounts
The surge in sales was not matched by a vast increase in the number of unitholder PEP accounts, which increased by only 6%. This could be explained by continued PEP account consolidations or more likely, as a result of a significant increase in investment by existing PEP holders.

Distribution
IFAs were responsible for 46% of all net retail sales, followed by sales forces/tied agents with 32% of the market and then "direct from public" at 21%. Private clients accounted for 1% of PEP sales.

Regular Savings
Sales of regular saving PEPs reached £431 million, contributing 8.8% of all PEP sales for the quarter. There are now over two million UT and OEIC regular savings plans; the majority (87%) being in PEPs.

Institutional Investment
The notable features of the institutional scene were the flows into Japan (£118mn) and out of North America (£90 mn).

Anne McMeehan, Director of Communications at AUTIF, commented:

"PEPs have been one of the most successful savings schemes of all time. Over their twelve year lifespan, they have introduced a wider group of savers to the enormous benefits of stock market investment than ever before.

"This one product has been used to supplement retirement income, pay off a mortgage or simply build-up capital with a regular savings plan. Its success can be attributed to its great simplicity and versatility. ISAs will find it difficult to match that track record given their greater complexity. But they offer people the same potential for their savings."

Regular Savings Plans: Q1 1999 (1^st January 1999 to 31^st March 1999)

Plan Holders:

Sales: £mn

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

Summary table: March 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
Susie Poote, Communications Assistant, AUTIF, 0171 831 0898

Notes to Editors:

Best selling funds in March

Net Retail Sales
Other UK Fixed Interest, Europe

Net Institutional Sales
UK Growth & Income, Japan

Worst selling funds in March

Net Retail Sales
International Growth, Global Emerging Markets

Net Institutional Sales
North America, Money Market

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 - March 1999

3. Retail gross - March 1999

4. Retail repurchases - March 1999

5. Retail net sales -March 1999

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

Charts

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