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Embargoed: 12.00pm: Monday 27 March 2000

FEBRUARY ISA SALES SOAR TO OVER A £££ BILLION £££

  • Gross ISA sales in February £1.07 billion – up 59% on January

  • ISA funds under management reach £8.6 billion – an increase of 17% on previous month

  • Total industry funds under management stand at £254 billion – 34% higher than February 1999

The boost in ISA business in February was not quite enough to beat last year’s PEP sales figure of £1.1 billion. One thing is certain - investors have not been discouraged from buying, in spite of recent ups and downs in world stock markets. Anecdotal evidence suggests that March too is going see bumper ISA figures as the tax year comes to a close.

Not surprisingly, technology funds, that have been so much in the news of late, have taken a lot of the new money. IFAs have been the driving force behind most of this business, accounting for 85% of sales (direct – 11%).

Anne McMeehan, Director of Communications at the Association of Unit Trusts and Investment Funds (AUTIF) commented:

"There is no doubt that over the last few months UK investors have developed a taste for higher risk funds. The percentage of new ISA business going into the main UK and European sectors is much the same as it was for PEPs last year. But last February’s PEP sales saw 27% going into the UK General Bond sector, this year it’s down to 7%. The global specialist sector, which includes technology funds, is getting the attention now, accounting for 16% of ISA sales."

She continued:

"As long as people fully realise that these funds may be quite volatile in the short term, it’s good that more people are seeking to diversify their holdings. A balanced portfolio for the long term is good – and, within reason, even quite cautious portfolios can justify a little spice!"

 

Summary Table: February Unit Trust, ISA and PEP sales

      Feb 00 Jan 00 Feb 99
Total fund value £254.0 bn £244.1 bn £190.2 bn
PEP fund value £58.0 bn £57.6 bn £52.5 bn
ISA fund value £8.605 bn £7.324 bn      
Accounts 14.4 mn 14.3 mn 11.7 mn
Gross sales £4,751.1 mn £3,584.4 mn £3,227.6 mn
Repurchases £3,740.9 mn £2,990.3 mn £2,495.1 mn
Total net sales £1,010.2 mn £594.0 mn £732.5 mn
Net retail sales £1,534.5 mn £958.5 mn £864.1 mn
Net institutional sales £-524.3 mn £-364 mn £-131.6 mn
Gross PEP sales £227.6 mn £152.4 mn £1,095.5 mn
Gross ISA sales £1,072.5 mn £673.5 mn     
Net PEP sales £-317.9 mn £-215.9 mn £627.9 mn
Net ISA sales £1,029.3 mn £646.4 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 February 2000

Net Retail Sales
UK All Companies, Global Specialist

Net Institutional Sales
Japan, UK Equity Income

Worst selling funds in February 2000

Net Retail Sales
UK Equity Income, UK Smaller Companies

Net Institutional Sales
Europe Excl UK, UK All Companies

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 2000

  2. Sector summary - February 2000

  3. Retail gross - February 2000

  4. Retail repurchases - February 2000

  5. Retail net sales - February 2000

  6. Institutional business - gross, repurchases and net sales - February 2000

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 – February 2000

  2. ISA gross sales – February 2000

  3. ISA repurchases – February 2000

  4. ISA net sales – February 2000

Summary Sheet
Sector Summary
Retail Gross Sales
Retail Repurchases
Retail Net Sales
Institutional Sales
ISA Sales and Repurchases
ISA Gross Sales
ISA Repurchases
ISA Net Sales

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© IMA 2002. Last Updated: 20 April, 2001