Getting fund sectors right for a brave new world

Over the past decade, sector classification issues have proved a persistent thorn in the side of the Investment Association (and predecessor the IMA).

Undoubtedly, having some kind of sector framework has been useful for investors and advisers to provide an initial comparison tool, paving the way for further analysis. However, now is surely the time for a more overarching look at the role of these sectors in investors and advisers' due diligence process, and whether bigger changes need making to a system established back in 1999, to reflect the rapid growth of more complex investment strategies and outcome-based products. This may not be easy. Over the years, the importance placed by the industry on positioning within these often ve...