IA to launch Volatility Managed sector for outcome-based funds

Chose new sector over reorganisation

The Investment Association (IA) will launch a Volatility Managed sector in November to house the growing number of funds in the Unclassified peer group which target a volatility or risk outcome for investors.

It said the sector will have a "high hurdle of transparency" for potential constituents when it goes live in the autumn. Funds in the sector will be required to publicly disclosed that a fund is 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 data is calculated. The trade body chose the launch over a complete reorganisation of sectors on the view the solution will "retain the overall scheme's current clarity for consumers and their advisers"....