Investment Association consults on 'major reorganisation' of sector system

The Investment Association (IA) is consulting members on a reorganisation of its sector structure as it seeks to better accommodate 'outcome-focused' funds.

The consultation seeks to address the growing number of fund groups launching 'solution' products, most of which currently sit in the Unclassified sector, both post-RDR and in anticipation of upcoming pensions reforms. There are already almost 200 such funds in the Unclassified sector, with AUM of around £30bn, though the IA acknowledged they are known by a number of names, including risk-targeted, multi-asset, fund solution, and asset allocation funds. The consultation follows multiple calls by some fund groups to reconsider the classification of risk-targeted funds, which currently ...