One of the most important ways in which the Investment Association sector framework is used by the industry, including fund selectors and distributors, is to compare performance. Performance data IS NOT collected by the Investment Association but by data vendors who use it to create ranking tables and calculate sector averages.
The Investment Association believes that, as far as possible, there should be a common basis for comparison and have sought to facilitate this by helping the data vendors identify a ‘primary’ share class in the post RDR world.
From 18 April 2016 the data vendors will base the primary on the nominated share class chosen by the fund group based on the following definition:
The highest charging unbundled – free of any rebates or intermediary commission – share class freely available through third party distributors in the retail market.
The following list shows the ISINs of the primary share classes that firms have nominated to the data vendors and where appropriate the ISIN of the donor track record. The list is updated at each month end to reflect funds that have been added or funds that have closed.
Please note the list may also be subject to some amendments at outset to accommodate any discrepancies notified by firms to the data vendors.
[Where a new primary based on the above has not been advised to the vendors the old primary will continue to represent the funds but will not be included on the list as this may vary between vendors.]
The Investment Association has not licensed a methodology for the calculation of sector average performance, believing it to be more appropriate for the commercial market to develop transparent processes. We have never stipulated, and do not believe it is our role to stipulate, precisely how individual sectors are analysed.