The UK’s Investment Association (IA), the country’s investment industry trade body, has launched a consultation into the future of its Global Bonds sector.
The IA’s current 37 sectors are designed to allow savers to easily navigate the open-ended fund market by dividing them into groups of similar funds.
The consultation proposes dividing the 193-strong Global Bonds sector into ten new sectors so savers and their advisers can better compare global bond funds based on the bond type (whether government or corporate, for example), credit type (investment grade, high-yield, etc) and currency.
Given the high number of ETFs looking to join the Global Bonds sector, which would have seen it increase by 50%, the IA has instead proposed the creation of ten new, more targeted sectors.
Jonathan Lipkin, director for policy, strategy & research, said: “We are continually monitoring the fund market to ensure that all of the IA sectors reflect the wide range of products the investment management industry has to offer UK savers.
“The division of the Global Bonds sector will better enable the inclusion of ETFs and make it easier for savers to make like-for-like comparisons.”
The consultation closes on October 10, 2020.
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