In recognition of the growing number of exchange traded funds (ETFs), The Investment Association (IA) has today opened a consultation on their proposed inclusion in the IA fund sectors.
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The IA’s 37 fund sectors enable savers and their advisers to easily compare open ended funds by dividing them into groups of similar funds based on factors such as asset class, investment strategy and geographical region.
Under the IA’s proposal, over 200 ETFs would be eligible to apply to be included within the existing sectors. Consistent with the current approach, only ETFs that are either UK domiciled, or are EU UCITs with HMRC reporting fund status would be included.
Commenting on the decision to launch the consultation, Galina Dimitrova, Director of Investment and Capital Markets at the IA said:
“We are continually monitoring the fund market to ensure that the IA sectors reflect the wide range of products the asset management industry has to offer savers. The primary purpose of the IA sectors is to serve the needs of consumers and their advisers and the addition of ETFs must be done in their best interests.”
The consultation will close on 1 February 2019 and respondents are invited to comment on the potential benefits and drawbacks of including ETFs in the IA sectors, as well as the best means for their inclusion.
Source: IA
