ABI announces fund sector improvements.

ABI announces fund sector improvements.

ABI announces fund sector improvements.

The ABI has today announced important changes to its classification system for life and pension funds.

The changes follow a detailed review of the existing ABI Sectors, which contain over 6,000 unit-linked life and pension funds. The Sectors allow investors and advisers to make like-for-like comparisons of unit-linked life and pension funds based on funds’ asset allocation.

The announcement follows several months of analysis of the current sectors, and consultation with insurers, fund managers and advisers, as well as regulatory and consumer organisations. The changes will take effect on 25 January 2008.

Jeremy Thatcher, Chairman of the ABI’s Investment Classification Committee, said:

“The new ABI Sectors reflect a number of major changes to the life and pensions industry. This includes the continued growth in unit-linked business, increasing demand for open architecture ‘wraps’ and multi-manager investing, and major inflows into property as an asset class.

“The ABI Sectors are a vital tool for fund comparison and these improvements will ensure the sectors reflect the current market as well as future developments. With the additional monitoring of these funds by the ABI, investors can have every confidence in this important tool.”

Key changes include:

  • New criteria for mixed asset fund sectors, including labels to highlight the equity exposure of managed fund sectors.
  • Three new fixed interest fund sectors.
  • New sectors to reflect the growing number and diversity of property funds.
  • The introduction of a flagging system to allow greater detail on sector sub-groupings, such as regional.

Details of the revised ABI Sectors are available via the ABI website, www.abi.org.uk.

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Notes for Editors

1. Enquiries to:
Alan Leaman 020 7216 7440 (Mobile: 07957 482 330)
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler 020 7216 7415 (Mobile: 07968 364 302)

2. The ABI Sectors system is managed by an ABI secretariat, with the support of ABI member life and pension companies and data providers, through the Investment Classification Committee (ICC), chaired by Jeremy Thatcher, Investment Development Director, Legal & General.

3. The ICC’s objective is to ensure that the retail life and pensions industry presents its unit-linked investment funds in a way that allows customers and advisers to make comparisons on a like-for-like basis. The proposals have been drafted in co-operation with ICC members.

4. The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 91% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold up to a sixth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.

5. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk