IA to open Volatility Managed sector on 3 April

Added 17th March 2017

The Investment Association (IA) has confirmed it will be launching its Volatility Managed sector on 3 April to accommodate the growing number of outcome-oriented funds currently crowding the IA Unclassified peer group.

IA to open Volatility Managed sector on 3 April


The trade body announced last year it would be reorganising the growing number of volatility funds - 75 at present - currently couched as ‘unclassified’.

Following industry consultation, the association opted for a new category rather than a complete overhaul of all its sectors as was initially proposed as a solution.

It was intially due to be opening in November 2016 but was delayed due to 

The sector definition will be as follows: “Funds whose objective is to manage their returns within specified volatility parameters. Outcomes are not guaranteed. Timeframes and methodologies for management of volatility may vary from fund to fund.”

Volatility is further defined as “one type of risk – a measure of the ups and downs of performance of a fund. The higher the volatility, the more uncertainty there is in the returns.”

The new sector will launch alongside the new yield requirement for the IA UK Equity Income sector, which was announced last week.

Groups will be required to disclose funds are managed with the intention to deliver a volatility or risk outcome as well as provide advisers and consumers with information on how volatility is measured - including the timeframe over which their volatility data is calculated. 

IA member firms will self-elect their funds for inclusion, with the submission process currently underway with the sector committee, which will in turn be counting, calculating performance figures and ranking ahead of the launch on 3 April.

Galina Dimitrova, director of capital markets at the IA, said: “Changes to the distribution chain, new regulation and the introduction of the pension freedoms have seen an evolution in the products offered by the asset management industry.

“The IA sectors always look to evolve alongside the universe of investment funds available to investors, and the launch of the Volatility Managed sector is an important step to grouping more outcome focused funds together for the benefit of consumers and advisers when making investment decisions.

“We will continue to work with our members, advisers and consumer groups to ensure that the sector definitions resonate with the investment funds the industry offers.”


Overseas earners will be key amidst 2017 inflation

Sponsored by Neptune

Overseas earners will be key amidst 2017 inflation...

A by-product of sterling weakness is inflation, and we expect this to continue to gather steam over the coming months, with energy and food prices the hardest hit....

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address



Investment Strategy




PA Alternative Ucits 2017 Congress
PA Alternative Ucits 2017 Congress

Tuesday 25 April
The Langham, London

PA Europe 2017
PA Europe 2017

Thursday 11 May
Furniture Makers' Hall

PA Channel Islands 2017
PA Channel Islands 2017

Wednesday 24 May
Royal Yacht Hotel, Jersey

PA UK Equity 2017
PA UK Equity 2017

Thursday 15 June
Radisson Blu Edwardian Bloomsbury Street Hotel

Sponsored Content

Investment Strategy