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For
Immediate Release: Tuesday 20 May 2003
IMA
CONSULTS ON CHANGES TO FUND SECTORS
The
IMA has announced that it is consulting on proposed changes
to fund sector definitions.
The IMA’s Performance Category Review Committee (PCRC)
is suggesting changes to the European, Japanese and North
American smaller companies sectors, as well as a revision to
the definition of the UK Equity Income sector.
Currently
smaller companies are defined as those within the bottom 10%
of market capitalisation in Europe, Japan and North America.
Monitoring of this sector by the IMA has shown that
perceptions as to what constitutes a smaller company vary
across markets. The
UK Smaller Companies sector will not change.
The PCRC has
proposed the following definitions:
-
European Smaller Companies sector –
smaller companies defined as those which form the bottom
20% by market capitalisation in the European market
-
Japanese
Smaller Companies sector – companies which form the
bottom 30% by market capitalisation
-
North American
Smaller Companies sector – companies which form the
bottom 20% by market capitalisation
The
PCRC is also recommending an amendment to the definition of
the UK Equity Income sector so that it refers to the gross
yield on the underlying portfolio.
This is to ensure that the sector can be properly
monitored.
The
new definition would read: “Funds which invest at least
80% of their assets in UK equities and which aim to achieve
a yield on the underlying portfolio in excess of 110% of the
FTSE All Share yield (net of tax).
The distributable income may differ from the yield
quoted in financial publications.”
Dorian
Carrell, Head of Statistics at the IMA, commented:
“The changes in the smaller companies sectors are being suggested to bring
the definitions into line with the market experience,
allowing for differing interpretations of smaller companies
in different geographic regions.
The proposal for the UK Equity Income sector is
simply to ensure it is possible to monitor funds in the
sector. I
look forward to hearing the views of IMA members.”
IMA
Members will have until Friday June 6 to respond to the
proposals.
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Ends -
For
further information, please contact:
Dorian
Carrell, Head of Statistics, IMA, 020 7831 0898
Clare
Arber, Head of Communications, IMA, 020 7831 0898
Notes to
Editors:
-
The
current and full list of sectors and definition can be
view on the IMA website, at:
To help
consumers identify funds from the 1,959 funds on offer
they are categorised within a fund classification
system. The
system has over thirty different sectors.
Each sector is made up of funds investing in
similar assets, or the same stock-market sectors, or in
the same geographical region.
Funds are classified in this way to ensure that
when comparing one fund with another, consumers are
comparing funds with similar objectives or with similar
underlying assets.
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The IMA is
the trade body representing the UK asset management
industry, representing some £2 trillion funds under
management and over 99% of the UK investment funds
industry (Unit Trusts and OEICs).
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
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