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Embargoed until 12 noon: Monday 29 July 2002

 

 INVESTMENT FUND STATISTICS
June 2002

 

• Investment funds under management £222 billion

• Gross industry sales £3.8 billion (June 2001 £4.9 billion)

• Gross retail sales £2.3 billion (June 2001 £2.5 billion)

• Gross ISA sales £429 million (June 2001 £571 million)

 

Overall total gross sales of investment funds were £13.4 billion in the second quarter of 2002, down 7% from £14.3 billion for the same period last year.  Gross retail sales were £8.6 billion, compared with £8.5 billion in the second quarter of last year.  In net terms total industry sales were marginally up to £2.72 billion compared to £2.71 billion in the same quarter the previous year.  Retail net sales, at £3.1 billion, were 7% down from the £3.4 billion for the same period in 2001. 

ISA gross sales for the month were 25% down on June 2001 to £429 million, with net sales down by 35% to £300 million.  41% of ISA sales were made through sales forces and tied agents, whilst IFAs were responsible for 35% and the ‘direct’ channel accounted for 23%.

There was significant investment by retail investors in the UK Corporate Bond sector (£298 million), contributing 14% of gross retail sales.  The UK Equity Income (at £222 million) and Far East excluding Japan (at £132 million) sectors accounted for 10% and 6% of sales.  The Far East ex Japan sector has increased its share of sales by 5% compared to June 2001.  Equity funds, such as the UK All Companies, North America and Europe ex UK sectors have seen their proportion of sales reduce.  The inflow into the UK Corporate Bond sector was largely made through the sales force/tied agent channel, whilst intermediaries were responsible for the sales of funds from the UK Equity Income and Far East ex Japan sectors.

The number of regular savings plans increased slightly in the second quarter and is back over two million. Contribution levels were however £511.7 million, down 3.7% from the previous quarter.

Richard Saunders, Chief Executive, commented:

“These figures show a continued positive inflow from retail investors, though it continues to be at a lower level than last year.  It is encouraging that, despite falling markets, there has been no significant increase in repurchases, suggesting that investors are not indulging in panic selling.  They appear to understand that volatility is an inherent part of stockmarket investment and realise the need to stay invested for the long term.”

Regular Savings Plans: Q2 2002 (1^st April 2002 to 30^th June 2002) 

	Q1 1999	Q2 1999	Q3 1999	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000
PEP/ISA	1,759,588	1,342,113	1,165,696	1,340,003	1,408,040	1,508,137	1,593,089	1,657,533
Non PEP/ISA	256,867	298,615	321,891	274,382	294,794	357,795	366,294	362,485
Total	2,016,455	1,640,728	1,487,587	1,614,385	1,702,834	1,865,932	1,959,383	2,020,018

 

	Q1 2001	Q2 2001	Q3 2001	Q4 2001	Q1 2002	Q2 2002	Q3 2002	Q4 2002
PEP/ISA	1,711,011	1,761,793	1,736,393	1,656,675	1,658,301	1,657,803
Non-PEP/ISA	319,893	319,365	311,045	331,663	337,605	357,019
Total	2,030,904	2,081,158	2,047,438	1,988,338	1,995,906	2,014,822

 

Sales: £mn

	Q1 1999	Q2 1999	Q3 1999	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000
PEP/ISA	£431.0m	£243.6m	£321.3m	£351.3m	£386.3m	£421.2m	£448.0m	£459.4m
Non-PEP/ISA	£84.3m	£70.6m	£60.4m	£54.8m	£60.1m	£79.5m	£68.1m	£99.4m
Total	£515.3m	£314.2m	£381.7m	£406.2m	£446.4m	£500.7m	£516.2m	£558.9m

	Q1 2001	Q2 2001	Q3 2001	Q4 2001	Q1 2002	Q2 2002	Q3 2002	Q4 2002
PEP/ISA	£501.0m	£478.6m	£475.9m	£468.5m	£460.9m	£440.8m
Non-PEP/ISA	£76.6m	£78.7m	£71.8m	£72.3m	£71.5m	£70.9m
Total	£577.5m	£557.2m	£547.8m	£540.8m	£531.4m	£511.7m

Note: Figures represent totals for the quarter, not monthly totals within the quarter.

Summary table: June – Unit Trust, ISA and PEP data