Information: For immediate release Tuesday 18 April 2000

ISAs SPRINT TO THEIR FIRST YEAR END

Unit trust and OEIC ISAs finished their first year in style, with March being their most successful month to date. Some £2.4 billion went into ISAs during March, over double the amount invested in February. A further £997 million was invested in the first five days of April, bringing total ISA gross sales for the financial year to £10.6 billion. Corresponding PEP sales in March 1999 were £3.2 billion for the month and £12.9 billion for the tax year 1998/99. (N.B. It should not be overlooked that as PEPs were a mature product, last year’s figures will have included a significant amount of money that was being ‘switched’, rather than ‘new’ money being invested in PEPs for the first time.)

ISA funds under management (unit trust and OEIC only) reached £10.8 billion as at the end of March 2000, with over three and a half million accounts having been opened throughout the year. Investors favoured the UK, European and Global Growth sectors, with corporate bond and index tracker funds still proving very popular. In March alone, the number of technology fund ISAs almost doubled, from 96,000 to 176,000.

IFAs improved on their previous 35% share of PEP market sales and were responsible for half of all unit trust and OEIC ISA sales. Sales forces/tied agents accounted for 26%, whilst 23% of sales were made ‘direct’ (40% and 24% respectively for PEPs last year).

Anne McMeehan, Director of Communications at AUTIF, commented:

"We are very pleased that in spite of early misgivings about the complex ISA structure, investors have remained committed to using unit trusts and OEICs for their long term investment needs.

After a slow start, equity ISA sales gained considerable momentum and by late autumn were proving to be every bit as popular as PEPs. Curiously though, the now traditional end of tax year rush to beat the deadline was repeated this year by eager ISA investors, who managed to pour a further £1 billion into investment funds in the last five days alone. "

Full ISA sales details will be available in AUTIF’s monthly sales summary, which will be issued next week.

For further information please contact:

Anne McMeehan, Director of Communications, AUTIF - Tel: +44 (0)20 7831 0898
Michael Quach, Head of Statistics, AUTIF - Tel: +44 (0)20 7831 0898
Clare Arber, PR Manager, AUTIF - Tel: +44 (0)20 7831 0898