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Embargoed: 12.00 noon: Monday 25 September 2000

INVESTORS BROADEN THEIR HORIZONS AND TURN OVERSEAS

  • Total industry funds under management almost £280bn

  • Gross sales rise to £4.6bn - up 51% on last year’s £3bn

  • ISA sales of £660m - £16.9bn funds under management

The increased flexibility introduced by Individual Savings Accounts (ISAs) has led to a growing proportion of unit trust and open-ended investment company (OEIC) investment moving overseas. Net sales into PEPs investing in areas outside the European Union in the summer (May/June/July/August) of 1998 was £64 million. This year, the figure for ISAs has gone up to £568 million – almost an eightfold rise.£118 million (18%) of all ISA sales went into funds investing outside the EU this August; mostly into the Global Growth sector, which has proven the most popular international sector with ISA holders.  As a whole, investment fund ISA gross sales continue to reflect the summer lull, slipping to £659.7 million from £703.2 million last month. However, this is still 17% ahead of last year’s figure and in line with PEP sales for August 1998. This month again sales forces and tied agents retained the lion’s share of ISA sales, but IFAs are the main proponents of international investment. Clare Arber, PR Manager at AUTIF, commented:

"Retail investors have started to take advantage of the added flexibility of ISAs by investing more of their portfolios overseas. In this respect ISAs enable new investors to obtain a far more diversified portfolio from the outset. "This is one way of reducing risk, but there are others to be taken into consideration. The AUTIF Investment Guide addresses the various types of risk that investors should take on board when choosing a fund to meet their specific needs. Free copies are available by calling tel: +44 (0)20 8207 1361 or can be obtained from the AUTIF website."

Summary table: Aug - Unit Trust, ISA and PEP data

 

Aug 00

Jul 00

Aug 99

Total funds

£279.7 bn

£265.2 bn

£217.8 bn

PEP funds

£60.6 bn

£58.5 bn

£57.6 bn

ISA funds

£16.9 bn

£15.5 bn

£3.1 bn

Total gross sales

£4,576.9 m

£4,485.3 m

£3,038.4 m

Total repurchases

£3,068.1 m

£2,589.7 m

£1,669.5 m

Total net sales

£1,508.8 m

£1,895.6 m

£1,368.8 m

Net retail sales

£1,463.2 m

£1,233.7 m

£1,036.1 m

Net institutional sales

£45.6 m

£661.9 m

£332.7 m

Gross PEP sales

£183.4 m

£156.3 m

£171.2 m

Gross ISA sales

£659.7 m

£703.2 m

£562.0 m

Net PEP sales

£-291.9 m

£-291.3 m

£-139.8 m

Net ISA sales

£598.2 m

£643.2 m

£554.9 m

Total accounts

15.9 m

15.7 m

13.4 m

ISA accounts

4.744 m

4.660 m

1.7 m

PEP accounts

9.12 m

9.17 m

9.85 m

Number of funds

1,880

1,874

1,754

Number of companies

157

157

152

For further information please contact:

Anne McMeehan, Director of Communications, AUTIF, +44 (0)20 7831 0898
Clare Arber, PR Manager, AUTIF, +44 (0)20 7831 0898
Dorian Carrell, Head of Statistics, AUTIF, +44 (0)20 7831 0898

Notes to Editors:

Best selling funds in August 2000

Net Retail Sales
Europe Excluding UK
UK All Companies		 Net Institutional Sales
North America
UK Corporate Bond

Worst selling funds in August 2000

Net Retail Sales
UK Equity Income 
UK Equity & Bond Income		 Net Institutional Sales
UK All Companies
UK Equity Income

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