Advisers have welcomed the IMA’s fund sector review.
Hargreaves Lansdown head of research Mark Dampier says it has a headache in splitting sectors but the result could make them more pertinent and accurate in terms of performance. He says: “Some of the sectors are in a complete mess so a change is needed. Top quartile in the specialist sector tends to mean nothing, given the diversity of funds. The same can be said for the UK all companies sector which has a wide range of funds.”
Chelsea Financial Services managing director Darius McDermott says the UK all companies and specialist sectors need particular attention.
The IMA needs to establish what qualifies as a sector in terms of the number of funds. The likes of global equity income need a sector but there are others that perhaps have only five or six funds and a sector does not seem worthwhile.”
Bestinvest senior investment adviser Adrian Lowcock says: “This is long overdue and the results should hopefully be to the benefit of the client. We have seen confusion over the sectors in recent times, most notably with what has happened in the UK equity income sector.”