Updates to ABI Fund Sectors and definitions
As part of the ABI’s remit to keep the ABI Fund Sectors and definitions up to date and relevant, the ABI carried out a wide member and stakeholder consultation in 2020. Respondents supported the proposals, which were:
- to create an ABI Volatility Managed Sector as a new and additional sector within the ABI Fund Sectors.
- to update the Property Sectors to retain the UK Direct Property Sector and to merge the UK Property and Global Property Sectors into one “Property Other” sector.
The updates to the Sector definitions were discussed and recommended for adoption by the ABI Sectors Panel, which reports into the Long-Term Savings Committee. The updates were formally approved by the Long-Term Savings Committee at its November 2020 meeting. The ABI has therefore accordingly updated the ABI Sector definitions to reflect the changes.
Refinitiv Lipper, who maintains and publishes the list of funds that are categorised within the ABI Fund Sectors (MasterList), has advised that the Sector changes will be made effective from 30th June 2021.
Property Sectors
Funds currently classified in the UK Property Sector or Global Property Sector will be reclassified by Refinitiv into Property Other. The changes will be reflected in the MasterList, to be effective from 30th June 2021.
Volatility Managed Sector
Fund Management Companies wishing to move funds that meet the definition criteria from existing ABI Fund Sectors into the new Volatility Managed Sector, should complete the relevant form (Sector change and fund merger form) on the Refinitiv website. For inclusion in the new sector by 30th June, 2021, please do so by 30 April, 2021.
For any queries on moving funds or creating new funds, please contact Refinitiv directly on [email protected]. For any questions on the definitions, please contact [email protected]
What are ABI Sectors?
ABI Fund Sectors
The ABI Fund Sectors is a system for the classification of unit-linked life and pension funds with similar investment strategies and sets out a list of defined fund categories, referred to as ‘Sectors’. The ABI Sector Definitions set out clear eligibility criteria by reference to which unit-linked life and pension funds that are put forward for classification are grouped into a particular ABI Fund Sector. The sectors are not designed to reflect the relative risk of funds. They are designed to group together funds that are similar, so that they can be compared on a like-for-like basis.
To ensure that the ABI Fund Sectors remain up to date and relevant, the ABI convenes a committee of ABI members at least twice a year to review the Sectors and their definitions and make updates as relevant. Any updates will be published on this website.
On 1 January 2020, the ABI appointed Refinitiv to collect data about specific funds in order to create a Master List of the actual funds that fall into each ABI Fund Sector. Refinitiv also monitor eligible funds to ensure that they remain classified in the correct Sector, according to the Fund Sector definitions and will determine any action to be taken in relation to any non-compliant funds. Refinitiv, and not the ABI, is solely responsible for these activities and any questions in relation to this should be directed to Refinitiv.
To register a new fund or to move a fund within the ABI Fund Sectors, or for a copy of the ABI Fund Sectors Master List, please contact Refinitiv.
Legal disclaimer
The ABI Fund Sectors and ABI Sector Definitions do not constitute input data for the purposes of the European Benchmark Regulation or the IOSCO Principles for Financial Benchmarks, and must not be used in any way that would have this effect. Neither the ABI nor any other person accepts any responsibility or liability for any loss of whatsoever nature or howsoever caused or occasioned, arising directly or indirectly from the use of the ABI Fund Sectors, the ABI Sector Definitions or the classification of any fund into an ABI Fund Sector.
Criteria for funds in the ABI Sectors
For more information on criteria for funds see ABI sector definitions.