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Embargoed: 12.00pm:   Monday 26 June 2000

ISA INVESTMENT MOMENTUM MAINTAINED

 
  • Investment fund gross sales for ISAs - £903.2 million
  • Total ISA funds under management reach £13.4 billion
  • Total gross sales for unit trusts and OEICS £4 billion for May
  • Total industry funds under management £257 billion

Figures for May 2000 reveal that unit trust and OEIC Individual Savings Accounts are continuing to appeal to investors. ISA sales are well up on the lacklustre start they had last year - and considerably higher than for every month in 1999. Net ISA sales of £854 million were 67% up on last May (£511.4 million), with gross sales of £903 million higher by 76% (£513.4 million). Independent financial advisers lead the way with 41% of ISA sales, sales forces/tied agents accounting for 37% and 21% of ISA investments via the ‘direct’ channel.

Overall sales for the investment funds industry reflect the normal seasonal pattern, with May figures well behind April, however, year on year the position remains very positive. Gross (£3,989 million) and net (£1,225 million) sales for May were down on April but 27% ahead on May 1999.

Funds focusing on investment in technology stocks are not enjoying the same level of success they experienced earlier in the year. Sales of £165 million are at their lowest level since last October. Nevertheless, they still account for 6% of all retail sales. (Click here to see the pattern of sales over the last 12 months into technology, UK tracker and UK bond funds as a proportion of total funds invested.)

Anne McMeehan, Director of Communications at AUTIF, commented:

"ISAs have come a long way in the last year. The figures for May are surprisingly good. Whilst investors have clearly rejected the old mantra of "sell in May and go away", we have yet to establish whether they have got wise to the idea of investing earlier in the tax year, rather than leaving things to the last minute."
   

Summary Table: May - Unit Trust, ISA and PEP Data

   

May 00

Apr 00

May 99

Total funds

£257.3 bn

£254.5 bn

£204.8 bn

PEP funds

£58.2 bn

£57.7 bn

£57.1 bn

ISA funds

£13.3 bn

£12.3 bn

£1.0 bn

Total gross sales

£3,989.0 m

£5,554.1 m

£3,147.7 m

Total repurchases

£2,763.8 m

£4,137.6 m

£2,180.4 m

Total net sales

£1,225.3 m

£1,416.5 m

£967.3 m

Net retail sales

£1,240.7 m

£2,381.3 m

£816.4 m

Net institutional sales

£-15.4 m

£-964.8 m

£150.9 m

Gross PEP sales

£193.7 m

£222.0 m

£215.2 m

Gross ISA sales

£903.2 m

£1,831.1 m

£513.4 m

Net PEP sales

£-222.4 m

£-195.1 m

£-129.7 m

Net ISA sales

£853.7 m

£1,776.1 m

£511.4 m

Total accounts

15.5 m

15.3 m

12.9 m

ISA accounts

4.289 m

4.033 m

995

PEP accounts

9.23

9.32

9.94

Number of funds

1,826

1,816

1,756

Number of companies

156

157

152

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:

Best selling funds in May 2000

Net Retail Sales
UK All Companies
Europe Excluding UK		 Net Institutional Sales
UK Corporate Bond
UK Equity Income

 

Worst selling funds in May 2000

Net Retail Sales
UK Equity Income
Global Equity Income		 Net Institutional Sales
Far East Excluding Japan
Japan

 

Summary Sheet
Sector Summary
Retail Gross Sales
Retail Repurchases
Retail Net Sales
Institutional Sales
PEP Summary

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© IMA 2002. Last Updated: 20 April, 2001