The Investment Association could be set for a major shake-up of its sector classifications as it launches a consultation to clear up the confusion around outcome-oriented funds.
The industry trade body said there were now 200 funds in its IA Unclassified sector with an outcome focus, accounting for £30bn of assets.
Fund groups have rushed to launch outcome-focused funds in recent years, in response to investor demand following the RDR.
But the structure of the IA sectors has meant the outcome-focused funds have been consigned to the Unclassified sector, making comparisons between them difficult.
But the IA’s new consultation has proposed to either set up a new sector for outcome-focused funds alongside the existing Mixed Investment sectors.
It has also proposed a more radical option, a “major reorganisation of the sector classification scheme”.
The overhaul would create two distinct areas, “one for asset-based funds and one for outcome-focused funds”, as well as a filter tool for investors to allow them to search for certain criteria within outcome-focused funds.
The deadline for the consultation has been set as April 2 2015, while the trade body said it would undertake seperate research gathering the views of financial advisers.
