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Embargoed: 12.00 noon: Monday 26 March 2001

INDUSTRY FIGURES FOR FEBRUARY SHOW THAT INVESTORS ARE KEEPING THEIR NERVE

• Investment funds under management - £257 billion

• Total gross sales - £3.8 billion (£4.5 billion in January)

• ISA gross sales - £762 million (£637 million in January)

• Retail repurchases - £1.3 billion (£1.5 billion in January)

Despite slower retail sales of unit trusts and OEICs in February, there are few signs of investors selling up. Retail gross sales of £2.4bn were 7% down on January, but so too were retail redemptions which decreased by 11% to £1.3 billion. ISA sales rose to £762 million from £637 million in January, but they failed to match the £1 billion invested in February 2000. Gross sales for ISAs in 2001 (£1.4 billion) are currently 18% lower than for January and February 2000 (£1.7 billion). The corresponding net ISA sales position is down by 29%, at least in part a reflection of the growing maturity of the product.

Increased institutional redemptions combined with lower investment overall contributed to a drop in unit trust and OEIC sales. Total sales of £3.7 billion are down 17% on January and 23% on February last year. Funds under management have also contracted as world stockmarkets have fallen.

As yet there is no apparent significant shift in investment to lower risk funds. Apart from a slight increase in business into high yielding bond funds, investors continue to favour the UK All Companies and Europe ex UK sectors.

Clare Arber, PR Manager at AUTIF, commented:

"Obviously we are not in a position to predict the flow of new investment into ISAs by the end of the tax year. However, one thing is clear and that is that although overall business has slowed, some investors do see current market conditions as a real buying opportunity for the medium to long term.

"Others are more cautiously standing on the sidelines, but very few appear to be running shy and liquidating their holdings. And for the last minute buyer, this year there really is a chance to sweep up an ISA at a lower price before the April 5 deadline."

Industry sales figures for March and the end of the tax year are expected to be available on Wednesday 25 April 2001.

Summary table: Feb - Unit Trust/OEIC, ISA and PEP data

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 February 2001

Worst selling funds in February 2001

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

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