The future scope of the Investment Association (IA) fund sectors is in question after it was revealed leading fund groups plan to quit the trade body in the coming months.
Yesterday Monday (October 5) it was revealed that Schroders and M&G do not plan to renew their membership with the trade body when it expires at the end of the year. Other fund houses are understood to be considering similar moves.
Should these asset managers sever all links with the IA, their fund ranges would no longer be listed in IA sectors or taken into account by the trade body’s monthly sales figures.
A compromise may be found, however, in the event that the fund groups opt for a lesser membership status.
The companies concerned are currently full members of the trade body, but would have the option of applying for sector membership.
According to the IA, this status “is designed for those firms that do not wish to participate in any wider activities at the Investment Association, but wish solely to have their funds admitted to the Investment Association sectors”.
Schroders and M&G declined to comment.
