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Embargoed: 12.00pm:   Monday 29 November 1999

OCTOBER - BEST MONTH YET FOR INVESTMENT FUND ISAs

  • ISA sales top £660mn in October (PEPs £630mn Oct 98)
  • ISA accounts exceed two million
  • Gross unit trust and OEIC sales of £3.2bn
  • Total investment funds under management reach £218bn
Gross sales of investment fund ISAs hit their highest mark yet in October, with over £660mn invested in unit trusts and OEICs. This is the first time that ISA gross sales have surpassed those of PEPs in the comparable period for the preceding year. ISA funds under management rose to £4.7bn and unitholder accounts increased by over 260,000 to top the two million mark at 2,182,287. UK All Companies is still the most favoured sector, with gross sales of over £240mn this month taking a third of all investment fund ISA business. However, the number of accounts invested outside the European Union is also steadily increasing and now stands just short of 400,000. The distribution pattern is much the same as in previous months, with sales forces and tied agents taking the lion’s share of the market (42%). However, IFAs were not far behind with 39% of business. The direct channel took 18%.Total unit trust and OEIC gross sales remained at £3.2bn this month, with total funds under management rising to £218bn. Repurchases and net sales also stood at similar levels to September. However, net sales were still considerably higher than last year, reflecting the more positive market this year in contrast to the post summer fallout in 1998. Anne McMeehan, Director of Communications at AUTIF, commented:
"Investors are warming to the idea of ISAs. They now account for just over 20% of all unit trust and OEIC gross sales and two thirds of all net retail sales. Although it is still early days, there is no reason why, given a buoyant market, ISAs should not do as well as PEPs."

Summary table: October Unit Trust/OEIC, ISA and PEP sales

     Oct 99 Sept 99 Oct 98
Total fund value £218.3 bn £212.9 bn £168.2 bn
PEP fund value £55.9 bn £55.1 bn £45.0 bn
ISA fund value £4.716 bn £3.882 bn    
Accounts 13.8 mn 13.6 mn 11.0 mn
Gross sales £3,230.1 mn £3,256.4 mn £2,589.9 mn
Repurchases £2,036.3 mn £2,033.5 mn £1,971.3 mn
Total net sales £1,193.8 mn £1,222.9 mn £618.6 mn
Net retail sales £972.9 mn £990.3 mn £367.6 mn
Net institutional sales £220.9 mn £232.6 mn £251.0 mn
Net PEP sales £-140.3 mn £-171.8 mn £359.0 mn
Net ISA sales £645 mn £606 mn    

For further information please contact:

Anne McMeehan, Director of Communications, AUTIF, +44 (0)20 7831 0898
Michael Quach, Head of Statistics, AUTIF, +44 (0)20 7831 0898

Notes to Editors:

Best selling funds in October

Net Retail Sales
UK All Companies, UK General Bonds

Net Institutional Sales
UK All Companies, UK Gilt

Worst selling funds in October

Net Retail Sales
UK Smaller Companies, UK Money Market

Net Institutional Sales
UK Smaller Companies, Japanese Specialist

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/OEIC and PEP sales - 1992 to 1999
  2. Sector summary - October 1999
  3. Retail gross - October 1999
  4. Retail repurchases - October 1999
  5. Retail net sales - October 1999
  6. Institutional business - gross, repurchases and net sales - October 1999
ISAs:
The ISA tables relate to accounts operated by unit trust managers only and not to accounts operated by all ISA managers.
  1. ISA sales and repurchases – October 1999
  2. ISA gross sales – October 1999
  3. ISA repurchases – October 1999
  4. ISA net sales – October 1999
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