Funds apply for IA’s ‘outcome’ fund category

The Investment Association (IA) proposal that a separate category for outcome-focused funds be created has attracted many applicants, the trade body tells Funds Europe.

The IA proposed the category last month and the category will be called ‘volatility outcome’.

To qualify, the funds must have the “common characteristic of targeting an investor’s attitude to risk set out in terms of volatility” and is in response to the growth in outcome-oriented products.

A spokesperson for the IA said there are around 120 funds that could be eligible for the Volatility Managed sector and said members will self-elect funds for the IA to review. A full list will be launched in November.

The spokesperson explained that the launch of the Volatility Managed sector will accommodate the largest group of funds in the IA’s Unclassified sector.

“This is the first step in the IA’s work to reflect the market’s drive towards outcome-focused products. Further work on the sector may take place once the population of funds is identified,” said the IA.

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