The IMA plans to stop counting Isa sales made via fund supermarkets when calculating providers' Isa...
The IMA plans to stop counting Isa sales made via fund supermarkets when calculating providers' Isa sales figures.
In a paper outlining proposed changes to its statistical methodology, the IMA said although the sale of Isa-wrapped funds belongs to the provider, the Isa wrapper technically belongs to the fund supermarket. Accordingly, supermarket Isa sales should not be assigned to the provider but should be reflected in their overall figures only.
The association is also canvassing possible changes to its classifications for fund of funds (fofs). Currently, such vehicles are classified as 'own' if the fund invests in a group's internal range and 'other' if it invests in products from other providers.
The IMA said it may create a third classification for fofs that invest in both internal and external products.
In addition, purchases by fof managers are currently recorded by the IMA as an institutional sale by the fund group. The IMA said it is concerned this may be a distortion as it does not reflect the ultimate owner of the funds, which is the retail investor.
On the other hand, the IMA conceded the sale could be institutional because the business has been awarded to the provider by an institution.
The proposals are being examined as part of a review of distribution sales channels by a working group chaired by Jim Roberts, director of investment at Skandia.
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