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Embargoed: 12.00 noon: Monday 27 November 2000

FUND SALES MAINTAIN MOMENTUM

  • Unit trust and OEIC gross sales reach £4 billion, up 15% on October 1999

  • ISA sales in October increase to £700 million, an increase of 6% on October last year

  • Investment funds under management - £267 billion

Sales of investment funds in October were strong, despite continuing stockmarket volatility. ISAs contributed £699.8m to total retail sales of £2.7bn. IFAs were responsible for 40% of ISA business, compared to sales forces 35% and direct 25%.

Over the last six months the UK All Companies sector has taken the bulk of investments, accounting for almost half (48%) of all ‘tied’ recommendations and 46% of ‘direct’ purchases. The proportion of IFA business in this sector was however much lower at 19%.

It is clear that tied advisers and their clients are more likely to buy generalist funds than those selected by investors going ‘direct’ or investing via IFAs. Over the past six months, 75% of ISA purchases made through sales forces have been confined to the UK All Companies, Europe ex UK, Balanced and Active Managed sectors, whilst these have accounted for 60% of ‘direct’ sales and 38% for IFAs.

ISA investment May to October 2000

Direct
IFA
Sales force/tied agent
UK All Companies
46%
UK All Companies
19%
UK All Companies
48%
Europe excluding UK
11%
Europe excluding UK
17%
Europe ex UK
11%
UK Other Bond
8%
Global Growth
14%
Balanced Managed
10%
Specialist
8%
UK Other Bond
12%
Active Managed
6%
Global Growth
8%
Specialist
10%
UK Corporate Bond
6%
UK Corporate Bond
4%
UK Equity Income
6%
Global Growth
5%
Balanced Managed
3%
UK Corporate Bond
4%
UK Equity & Bond Income
5%
North America
2%
North America
3%
North America
2%
UK Equity Income
2%
Balanced Managed
2%
UK Equity Income
1%

 

Non-ISA retail fund sales reflect a similar degree of concentration. Again, the UK All Companies sector proves to be the most popular, but both IFAs and ‘direct’ investors appear to prefer to spread their investments across a far wider range of sectors than clients served by sales forces and tied agents.

Non-ISA retail investment May-October 2000

Direct

IFA

Sales force/tied agent

UK All Companies

23%

UK All Companies

17%

UK All Companies

41%

Europe excluding UK

9%

Europe excluding UK

17%

UK Corporate Bond

13%

UK Money Market

9%

North America

15%

Europe excluding UK

10%

UK Corporate Bond

8%

Specialist

10%

North America

7%

Global Growth

7%

UK Equity Income

6%

Global Growth

6%

UK Equity Income

6%

UK Other Bond

4%

Europe including UK

5%

UK Smaller Companies

5%

Japan

4%

UK Equity & Bond Income

4%

Clare Arber, PR Manager at AUTIF, commented:

"Perhaps not surprisingly the figures reveal that if investors want to focus their attention on more specialist investment areas, they are likely to find a suitably qualified independent adviser best equipped to help them."

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

 

Oct 00

Sept 00

Oct 99

Total funds

£266.8 bn

£269.2 bn

£218.8 bn

PEP funds

£58.1 bn

£58.2 bn

£55.9 bn

ISA funds

£17.5 bn

£17.2 bn

£4.7 bn

Total gross sales

£4,032.9 m

£4,813.5 m

£3,518.7 m

Total repurchases

£2,380.6 m

£3,697.5 m

£2,059.9 m

Total net sales

£1,652.3 m

£1,116.0 m

£1,458.8 m

Net retail sales

£1,261.2 m

£1,369.0 m

£1,061.4 m

Net institutional sales

£391.1 m

£-253.0 m

£397.4 m

Gross PEP sales

£145.9 m

£164.8 m

£134.0 m

Gross ISA sales

£699.8 m

£682.0 m

£660.1 m

Net PEP sales

£-239.9 m

£-239.1 m

£-140.3 m

Net ISA sales

£633.1 m

£616.6 m

£645.6 m

Total accounts

16.2 m

16.1 m

13.8 m

ISA accounts

5.210 m

5.055 m

2.182 m

PEP accounts

9.07 m

9.11 m

9.68 m

Number of funds

1,907

1,898

1,757

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 October 2000

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

Worst selling funds in October 2000

Net Retail Sales
UK Equity & Bond Income 
UK Corporate Bond		 Net Institutional Sales
 Global Growth
European Smaller Companies

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