We think common comparisons are a good thing and support data vendors in identifying a ‘primary’ share class that is used to produce the sector averages and fund rankings.
We’ve not licensed a way to calculate sector average performance, because we think it’s better for the commercial market to develop transparent processes. We do not believe it’s the IA’s role to stipulate how to analyse individual sectors.
Since 18 April 2016, data vendors have based the ‘primary’ on the nominated share class chosen by the fund group on the following definition:
The highest charging unbundled – free of any rebates or intermediary commission – share class freely available through third-party distributors in the retail market.
The primary share class list shows the ISINs of the primary share classes that firms have nominated to the data vendors, and where appropriate, the ISIN of the donor track record. The list is updated regularly to reflect funds that have been added, closed or the primary has changed.
To request a change of primary share class or a track record extension firms should complete this form and send to the data vendors shown in Tab 2.
[Where a new primary based on the above hasn’t been advised to the vendors, the old primary may continue to represent the funds.]