A key way the investment industry, fund selectors and distributors use our sector framework is to compare performance.
Please note, data vendors collect performance data to create ranking tables and calculate sector averages. You can find further information on the average performance of the IA sectors on our website here. This data is calculated by Morningstar.
We think common comparisons are a good thing and support data vendors in identifying a ‘primary’ share class in the post-RDR (retail distribution review) world. This 'primary' shareclass is used by the data vendors 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 following list shows the ISINs of the primary share classes 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.]