Some 11 of the larger fund management houses have called a meeting with Standard & Poor's, Lipper an...
Some 11 of the larger fund management houses have called a meeting with Standard & Poor's, Lipper and Morningstar aiming to end what they see as the inappropriate and unfair categorisation of funds.
The three agencies all confirmed they would meet on 27 September with representatives of Credit Suisse, Fidelity, Goldman Sachs, HSBC Asset Management, ING Investment Management, Invesco Perpetual, JP Morgan Fleming Asset Managers, M&G, Merrill Lynch, Schroders and Threadneedle. All 11 asset managers believe the fund performance and ratings providers have not kept pace with product innovation and, at times, are putting very different funds into the same sectors, creating misleading comparisons.
They feel the steps being taken by the IMA to clean up and police the onshore fund sectors need to be mirrored by the ratings agencies and data providers.
The IMA has promised to create a new sector for funds operating under flexible, absolute return style mandates, such as CF Odey Continental European and GAM UK Diversified. Both the funds have made large switches into cash and bonds to preserve value and consequently outperform mainstream peers, which have a greater focus on relative performance and benchmarking.
Robert Higginbotham, retail marketing director at Schroders and spokesman on the issue, said: 'The UK market is now better structured to deliver clarity through the IMA Performance Category Review Committee. The same can not be said for Europe.'
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m