ABI’s Sectors

The ABI (Association of British Insurers) investment fund Sectors facilitate comparisons between similar life and pensions funds.  They have recently introduced new rules to ensure that all providers of funds in ABI Sectors incorporate their current fund charges into their performance data in a consistent way.

Their goal is a level playing field for past performance comparisons made by advisers, consumers and providers.

What are the ABI’s investment fund Sectors? 

The ABI maintains a range of sectors for unit-linked life and pension funds.  Funds that are marketed as members of an ABI sector must comply with the relevant sector criteria.  For example:

Balanced Managed Sector:

• Maximum of 85% total equity (including Preference Shares, Permanent Interest Bearing Shares and Convertibles).
  
• Minimum of 40% total equity.
  
• Minimum of 50% Sterling based assets (including fixed interest hedged back to Sterling).
  
• Fixed interest defined as Government Sovereign Bonds and Corporate Bonds. 

Sectors allow advisers and consumers to make like-for-like comparisons between funds with broadly comparable asset allocations and other characteristics.   

The ABI introduced new rules on the treatment of charges to ensure greater consistency in past performance reporting practices. 

Sector Performance

Sector Definitions