Lipper, the investment funds statistics and research provider, has been appointed as Autif's sector ...
Lipper, the investment funds statistics and research provider, has been appointed as Autif's sector monitor to ensure that unit trusts and Oeics adhere to sector rules.
Currently, fund groups agree to abide by the rules of the Autif sectors, however there is no monitoring to ensure funds remain within the guidelines.
Lipper already has a large proportion of the portfolio information feeds necessary to monitor the make-up of portfolios.
Steve Lipper, the group's managing director, said it was working to put in place information feeds from the groups which are not now covered.
For example, in the UK All Companies sector the group has portfolio feeds in place on just over 50% of the sector as measured by funds under management. The appointment, for which a contract has not yet been signed, has been verbally agreed by both parties, but Autif hopes that the collaboration will be up and running by spring next year.
Richard Saunders, director general at Autif, said the details of how the policing programme is to be implemented have not yet been finalised and it has not yet been decided what would happen if funds breached sector rules.
Measures could include allowing fund managers a period of grace to correct portfolios and in extreme cases involve moving funds to other sectors.
This measure was, Saunders said, very serious, as it could result in the loss of a fund's track record.
The aviation sector's constant evaluation of errors in order to improve safety should be applied to defined benefit (DB) schemes, as too many are repeating the same mistakes again and again, research has shown.
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