There are over 30 IA sectors. These are there to help anyone navigate around the large universe of funds in the UK and include some offshore (EU) funds.
The sectors divide up the funds into smaller groups, to allow you to make like-for-like comparisons between funds in one or more sectors, for instance to look at performance and fund charges.
Each sector has a clear definition setting out the criteria a fund must fulfil. Weve organised most sectors based on the main asset types the fund invests in. Funds in any sector may offer a wide mix of asset, strategies and risk profiles.Look up individual sector definitions.
There are around 3,000 funds on sale in the UK. Our sectors provide a way to divide these into broad groups, so investors and advisers can compare funds in one or more sectors before looking in detail at individual funds.
IAs sectors are overseen by our Sectors Committee. An independent monitoring company checks the funds monthly to ensure they comply with the sector definition. If they dont, we can remove them.Find out moreabout how we manage sectors and our Sector Committee reviews.
Broadly, we split funds between income and capital growth. We then classify these by asset type, region or industry sector they invest in. Some sectors focus on protecting capital or are in a Specialist category, while others are Unclassified. Some sectors group together funds with an outcome focus such as Targeted Absolute Return or the Volatility Managed sector.See more about sector classification.
A key way the industry, fund selectors and distributors use fund sectors is to compare performance. Please note, data vendors collect performance data to calculate sector averages. We think common comparisons are a good thing and support data vendors to identify a primary share class in the post-RDR (retail distribution review) world.Find out moreabout fund sector performance.