For Immediate Release: Tuesday 14 November 2000
QUARTERLY CHARTPACK ILLUSTRATES THE BENEFIT OF REGULAR
SAVINGS PLANS
For investors concerned about the right time to invest in
the stock market, unit trust and OEIC regular savings plans
are an ideal solution. A small amount saved each month can
turn into a significant investment over the long term. The
latest quarterly performance charts show that, over the past
ten years, a £50 regular savings plan in the average UK All
Companies fund would have grown to £11,833 and £12,065 in
a PEP/ISA; double the total capital invested. A comparable
savings plan in a building society account would have returned
£7,015, or £7,322 with interest gross.
Readers can call +44 (0)20 8207 1361 for a free copy of AUTIF’s
Monthly Savings factsheet or read it on the website, www.investmentfunds.org.uk.
- Over 10 years to 1 September 2000, the annual income on
£1,000 invested in an average UK Equity Income unit trust
increased to £73 after 10 years. The income from a Corporate
Bond fund stood at £64; while the savings income on an average
building society deposit account dropped to £23 in the tenth
year, falling from £86 in 1991. [Chart 1]
- The capital invested in an average Corporate Bond fund
in September 1990 had grown by 37% over the 10 years, compared
to 132% in an average UK Equity Income fund. [Chart 2]
- A lump sum of £1,000 invested in an average building
society deposit account in September 1990 added £449 to
its value over 10 years, whilst the investment in an average
Corporate Bond fund (including both income and capital growth)
more than doubled to £2,316. The equity income fund grew
by 236% to £3,358 or £3,690 in an equivalent PEP/ISA. [Charts
3/5]
- Over the ten year period to September 2000 average returns
from UK Equity Income funds were similar to those achieved
by UK All Companies and Global Growth funds. After 10 years,
£1,000 invested in the UK Equity Income sector had become
£3,358, compared to £3,755 in the Global Growth sector and
£3,746 in the UK All Companies sector. [Chart 4]
- On regular savings of £50 a month, an equity investment
in a UK All Companies fund outstripped the savings account
deposit after 5 years by £738. The difference increased
to £4,818 over 10 years and £11,343 after 15 years. [Chart
6]
- A £1,000 investment in a UK Equity Income fund was 15%
higher than an equivalent Managed Life Fund investment after
10 years, but 132% higher than the average building society
deposit account for the same period. The difference on a
£50 regular savings plan over 10 years was 4% on the Managed
Life Fund and 53% on a deposit. Charts 7/8]
- After 15 years, a £1,000 lump sum investment in a UK Equity
Income Fund ran 201% ahead of the deposit account and 49%
ahead of the Managed Life Fund; while the £50 regular savings
unit trust/OEIC plan ended 77% higher than the deposit account
and 13% higher than the managed life fund. [Charts 7/8]
- After 10 years, £1,000 in an average UK Equity and Bond
Income Fund beat the Retail Price Index by 114% or 138%
in a PEP/ISA. The deposit account was 9% ahead of the Retail
Prices Index. [Chart 9]
£1,000 invested in an average fund in the following sectors
over ten years, would have achieved returns of more than £5,000
– European Smaller Companies, North America, North American
Smaller Companies and UK Smaller Companies.
A £50 per month regular savings plan over ten years, would
have achieved returns of more than £15,000 in the average
funds of the following sectors – Europe excluding UK, Europe
including UK, North America and UK Smaller Companies, with
the average European Smaller Companies and North American
Smaller Companies sectors returning over £19,000. [Chart 10]
For further information please contact:
Anne McMeehan, Director of Communications,
AUTIF - +44 (0)20 7831 0898
Dorian Carrell, Head of Statistics, AUTIF - +44 (0)20 7831 0898
Clare Arber, PR Manager, AUTIF - +44 (0)20 7831 0898
Attachment 1 - Charts
1 - 9 (in PDF Format)
Attachment 2 - Chart 10 (in PDF
Format)
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