13 September 2021 – The Investment Association, the trade body and industry voice for UK investment managers, has announced that it is launching six new sectors today.
Two of the new sectors will be region-specific: IA Latin America funds will have at least 80% of their portfolio invested in Latin American equities, while IA Indian/Indian Subcontinent funds will have at least an 80% allocation to Indian equities, or stocks across the Indian sub-continent.
A further two new sectors will be industry specific: IA Financials and Financial Innovation funds will hold at least 80% of their portfolios in financial services companies and "related sectors", while the IA Healthcare sector will be for portfolios holding more than 80% in pharmaceuticals, healthcare equipment and healthcare services.
The final two new sectors are IA Infrastructure and IA Commodity/Natural Resources. Funds in the IA Infrastructure sector will have at least 80% of their assets directly or indirectly invested in companies involved in the ownership, operation or maintenance of infrastructure assets (such as utilities, energy, transport, health, education, security and communications. Funds in the IA Commodity/Natural Resources sector will also have at least 80% of their holdings in commodity or natural resources related equities.
Darius McDermott, managing director of Chelsea Financial Services, commented: “Many of these funds have previously sat in the IA Specialist sector, which is home to more than 300 funds investing in very different things.
“I think this is a sensible move that will help investors find and compare funds more easily.”