Press Release
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 |
Net Institutional Sales |
Worst selling funds in October 2000
|
Net Retail Sales |
Net Institutional Sales |
Summary Sheet
Sector Summary
Retail Gross Sales
Retail Repurchases
Retail Net Sales
Institutional Sales
PEP Summary