Investment Fund ISAs off to a good start in new tax year

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Embargoed: 12.00 noon: Tuesday 29 May 2001

INVESTMENT FUND STATISTICS APRIL 2001

INVESTMENT FUND ISAs OFF TO A GOOD START IN NEW TAX YEAR

·          Total net industry sales in April 2001 £2.9 billion

91% up on April 2000 (£1.5bn)

38% up on March 2001 (£2.1bn)

·          Gross retail sales of £3.435bn (£3.432bn in March 2001)

·          Net retail sales of £1.962bn (£1.339bn in March 2001)

·          Total investment funds under management - £260 billion

·          ISA gross sales of £1.5 billion (£1.3bn in March 2001)

·          ISA investment funds under management - £21 billion

Industry funds under management benefited from the recovery in world markets last month, reaching £260 billion at the end of April. At £5bn, total gross sales of investment funds are marginally lower than those for March, but a decline in redemptions led to a 38% increase in net industry sales this month to £2.9bn. This is almost double the net amount for April 2000.

Sales of investment fund ISAs rose by 12% to £1.477 billion (£1.316 billion in March), of which £664m was invested before 5 April, the end of the tax year. Net ISA investment reached £1.4bn (£1.2bn in March). However, net sales were 25% down on April last year. As in recent months, 45% of ISA buyers bought through IFAs this month, with 28% using sales forces or tied agents. But the number of investors choosing to buy “direct” has grown to 27%. This proportion stood at some 16% when ISAs were first introduced.

Investors are still seeking shelter in the lower risk sectors, choosing income and managed funds to house their money; this is particularly true of purchases made through sales forces and tied agents. But the specialist sector retains an attraction for those buying “direct”.

Most Popular Sectors in April for ISA Investors
Direct	IFA	Sales Force/Tied Agents
UK All Companies	UK All Companies	UK All Companies
UK Other Bond	UK Other Bond	Balanced Managed
Europe ex UK	Europe ex UK	UK Corporate Bond
Global Growth	Global Growth	Europe ex UK
UK Corporate Bond	UK Equity Income	Cautious Managed
Specialist	UK Corporate Bond	Active Managed

Clare Arber, PR Manager at AUTIF commented:

“Net sales for the industry are almost double those for last year, reflecting the fact that in spite of market volatility and reduced new business levels, overall outflow of business has also fallen. This suggests that general market sentiment continues to be the prime determinant of business flow.”

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

	Apr 01	Mar 01	Apr 00
Total funds	£260.0 bn	£244.8 bn	£257.5 bn
PEP funds	£54.0 bn	£51.9 bn	£59.0 bn
ISA funds	£21.1 bn	£18.8 bn	£12.3 bn
Total gross sales	£5,048.4 m	£5,669.3 m	£5,666.5 m
Total repurchases	£2,165.6 m	£3,573.1 m	£4,154.8 m
Total net sales	£2,882.8 m	£2,096.2 m	£1,511.7 m
Net retail sales	£1,962.4 m	£1,339.1 m	£2,461.0 m
Net institutional sales	£920.4 m	£757.2 m	£-949.3 m
Gross PEP sales	£166.0 m	£171.8 m	£227.1 m
Gross ISA sales	£1,476.9 m	£1,316.2 m	£1,904.2 m
Net PEP sales	£-134.7 m	£-302.5 m	£-194.1 m
Net ISA sales	£1,392.6 m	£1,187.1 m	£1,849.2 m
Total accounts	17.7 m	17.4 m	15.6 m
ISA accounts	6.616 m	6.218 m	4.033 m
PEP accounts	8.77 m	8.80 m	9.45 m
Number of funds	1,962 m	1,968	1,816
Number of Companies	154	155	158

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

Notes to Editors:

Best selling funds in April 2001

Net Retail Sales
UK All Companies
UK Other Bond

Net Institutional Sales
UK All Companies
North America

Worst selling funds in April 2001

Net Retail Sales
Guaranteed/ Protected Funds
Global Emerging Markets

Net Institutional Sales
UK Smaller Companies
Balanced Managed

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

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© IMA 2002. Last Updated: 30 October 2006