IA launches consultation on inclusion of ETFs in the sectors

Friday 30 November 2018

In recognition of the growing number of exchange traded funds (ETFs), The Investment Association (IA) has today opened a consultation on their proposed inclusion in the IA fund sectors.

The IA’s 37 fund sectors enable savers and their advisers to easily compare open ended funds by dividing them into groups of similar funds based on factors such as asset class, investment strategy and geographical region.

Under the IA’s proposal, over 200 ETFs would be eligible to apply to be included within the existing sectors. Consistent with the current approach, only ETFs that are either UK domiciled, or are EU UCITs with HMRC reporting fund status would be included.

Commenting on the decision to launch the consultation, Galina Dimitrova, Director of Investment and Capital Markets at the IA said:

“We are continually monitoring the fund market to ensure that the IA sectors reflect the wide range of products the asset management industry has to offer savers. The primary purpose of the IA sectors is to serve the needs of consumers and their advisers and the addition of ETFs must be done in their best interests.”

The consultation will close on 1 February 2019 and respondents are invited to comment on the potential benefits and drawbacks of including ETFs in the IA sectors, as well as the best means for their inclusion.

Notes to Editors

For media - to receive the full consultation, please contact [email protected]

An exchange-traded fund (“ETF”) is an investment fund (commonly aiming to track an index) where shares in the investment fund are traded on a stock exchange(s) and can be bought or sold by investors at the current market price throughout trading hours (i.e. it allows for “intra-day” trading).

The IA has also produced a ‘Beginner’s Guide to ETFs’, in partnership with law firm Dechert LLP.

For media enquiries:

Helen Ayres, Media Relations Manager: [email protected]

T +44 (0)20 7269 4696, M +44 7508 724066

About the Investment Association:

• The IA champions UK asset management, supporting British savers, investors and businesses. Our 240 members manage £6.9 trillion of assets and employ 93,500 people across the UK.
• Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
• Our purpose is to ensure investment managers are in the best possible position to:
  • Build people’s resilience to financial adversity
  • Help people achieve their financial aspirations
  • Enable people to maintain a decent standard of living as they grow older
  • Contribute to economic growth through the efficient allocation of capital.
• The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
• The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.