The IMA is to look at dividing up the 309 fund strong UK All Companies peer group into a number of s...
The IMA is to look at dividing up the 309 fund strong UK All Companies peer group into a number of sectors.
Dorian Carrell, head of statistics at the IMA, said if the FSA finds at its annual sector review this autumn there are any clusters of funds that would separate out easily and logically into sectors of their own, it will take them out of All Companies.
Simon Ellis, chairman of the investment funds committee at the IMA since May, noted the difficulty is working out the correct sector classifications, such as whether it should be by market cap or investment style.
Ellis, also head of UK retail at Hendersons, added: 'There are two phases to the work we are doing at present. The first has been to ensure funds are conforming to the sector classifications; the second will be to make the sectors more useful, so people can openly and clearly compare like with like.'
Carrell said the work the committee has done monitoring sectors makes it easier to understand the funds that comprise them and what they are doing but the process to separate them out will be slow.
Colin Morton, manager of the BWD Equity Income fund, said with more than 300 funds in the All Companies sector, many of which have different objectives, it is difficult at present to understand how funds are really performing.
He believes to improve the situation, the IMA should separate out blue-chip, mid-cap and focus funds from the sector.
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