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Eight hot finance sectors to watch out for in 2021

by LLB Editor
26th May 21 11:07 am

Eight new sectors are set to be created from the Investment Association’s (IA) Global and Specialist sectors as of 13 September 2021.

Currently, the two sectors are among the largest within the classification scheme, with 465 funds included within the IA Global sector and 329 in the IA Specialist sector. The creation of the new sectors reflects the growing and evolving retail fund market and will affect around 150 funds from the two sectors.

New country – regional equity sectors:

  • Latin America
  • India/Indian Subcontinent
  • Global Smaller Companies

Industry sectors:

  • Financials and Financial Innovation
  • Healthcare

Alternative investment approaches:

  • Infrastructure
  • Gold and Precious Metals
  • Commodity/Natural Resources

The decision to create the new sectors was taken after industry and wider public consultation.  As with all changes to the sector classifications, it aims to make it easier for savers and their advisers to find information and make like-for-like comparisons. This latest development will see the number of sectors increase from 51 to 59 housing over 4,100 funds.

The creation of the new sectors follows the inclusion of over 530 exchange traded funds (ETFs) into the IA’s sectors in April. Both the Specialist and Global sectors admitted a large number of ETFs, with 79 and 71 ETFs joining each respectively.

Miranda Seath, Head of Market Insight at the Investment Association said: “As the retail funds market in the UK evolves, so too do our sectors. The inclusion of ETFs in our sectors has been a good opportunity to review the future of two of our largest sectors, IA Global and IA Specialist.

“The eight new sectors have the ambition to support the long-term financial aims of the investors they serve and each includes a meaningful number of funds with similar investment objectives – helping savers and their advisers to better navigate and compare the funds on offer in the UK.”

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