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UK Business (monthly)
Embargoed: 12.00pm: Monday 20 December
1999
RETAIL INVESTORS RUSH TO TECHNOLOGY
FUNDS AS INDUSTRY SALES SOAR
- Gross sales for unit trusts and OEICs up 33% on October to
£4.7bn
- Funds under management swell to £238bn
- Gross sales for investment fund ISAs rise by 13% to £743mn
- ISA funds under management top £6bn
- Investors pour £220mn into technology funds
Sales of unit trusts and OEICs are at their highest level since the
end of the last PEP season in April. Gross sales in November rose
to £4.7bn, an increase of 33% on the previous month. Together with
rising world markets, these sales helped push total investment funds
under management up 8% to £238bn. November retail sales were boosted
by a spectacular 200% rise in technology fund sales. In all, over
£247mn flooded into the Global Specialist sector, 90% of which went
into the technology funds. Institutions accounted for less than £9mn
of the £247mn, leaving retail investors responsible for £238mn worth
of sales. These investments went into unit trusts and OEICs directly,
with only £28mn invested through ISAs. This surge of funds into the
Global Specialist sector was the work of IFAs, who were the impetus
behind 90% of all retail sales in the sector. ISAs enjoyed their third
successive, record month, with gross sales passing £743mn. (Comparable
PEP sales for November 1998 stood at £658.5mn.) ISA funds under management
are now ahead of the £6bn mark, with the number of accounts reaching
2.4mn. Sales forces and tied agents maintain their lead share of the
ISA business at 43%, with IFAs at 38% and the direct channel with
18%. However, IFAs account for 56% of all unit trust and OEIC business,
whilst sales forces take only 24%.Anne McMeehan, Director of Communications
at AUTIF, commented:
"Technology stocks have been attracting much attention
for months now, but this is the first time we’ve seen the same
sort of enthusiasm extend to unit trusts and OEICs. IFAs and their
clients clearly believe that entry via a diversified portfolio is
a good way to gain exposure to this volatile market.
She continued:
"It’s also important to point out that ISAs
are continuing to flourish. Over the last two months we’ve
seen gross sales overtake the equivalent figures for PEPs for the
same period last year. We await, with interest, the figures for
the end of the year to see whether a trend is starting to emerge."
Summary table: November Unit Trust, ISA and PEP sales
|
|
Nov 99 |
Oct 99 |
Nov 98 |
|
Total fund value |
£237.8 bn |
£218.8 bn |
£178.7 bn |
|
PEP fund value |
£58.2 bn |
£55.9 bn |
£48.0 bn |
|
ISA fund value |
£6.016bn |
£4.717bn |
|
|
Accounts |
13.9 mn |
13.8 mn |
11.2 mn |
|
Gross sales |
£4,670.3 mn |
£3,516.5 mn |
£2,881.2 mn |
|
Repurchases |
£2,591.3 mn |
£2,059.7 mn |
£1,990.8 mn |
|
Total net sales |
£2,079.0 mn |
£1,456.8 mn |
£890.4 mn |
|
Net retail sales |
£1,091.8 mn |
£1,059.4 mn |
£577.7 mn |
|
Net institutional sales |
£987.1 mn |
£397.4 mn |
£312.7 mn |
|
Net PEP sales |
£-233.1 mn |
£-140.3 mn |
£386.3 mn |
|
Net ISA sales |
£720mn |
£645 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
Clare Arber, PR Manager, AUTIF, +44 (0)20 7831 0898
Notes to Editors:
The gross sales figure for UK General Bonds of £999mn
(£286mn in October) was signficantly boosted by an investment on
behalf of an institutional pension fund.
Best selling funds in November
Net Retail Sales
UK All Companies, Global Specialist
Net Institutional Sales
UK General Bonds, Far East Excl Japan
Worst selling funds in November
Net Retail Sales
Active Managed, UK Money Market
Net Institutional Sales
Japanese Specialist, UK Gilt
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.
- Summary of total Unit Trust/OEIC and PEP sales - 1992 to 1999
- Sector summary - November 1999
- Retail gross - November 1999
- Retail repurchases - November 1999
- Retail net sales - November 1999
- Institutional business - gross, repurchases and net sales -
Nov 1999
ISAs:
The ISA tables relate to accounts operated by
unit trust managers only and not to accounts operated by all ISA managers.
- ISA sales and repurchases – November 1999
- ISA gross sales – November 1999
- ISA repurchases – November 1999
- ISA net sales – November 1999
Charts
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