Performance Category Review Committee

The Committee provides guidance to IMA members and data measurers on the appropriate classification of funds by type and the method of calculation and disclosure of performance and other related data, including yields, charges and prices. Click here for the Committee's Terms of Reference.

As far as possible the PCRC seeks to ensure:

Uniformity – in the way that data is prepared and presented(at the same time recognising that the data providers are not bound by the Committee’s guidance and that they are free to pursue their individual commercial objectives);

Continuity – on the basis that frequent change is confusing to investors unless there is a compelling reason for it and change over time is likely to reduce the meaningfulness of the data;

Intelligibility – although it is recognised that it is the way in which data is interpreted that ultimately determines its effectiveness; and

Independence – measurement comparisons should be independent of commercial considerations.

Areas falling within the Committee’s remit include:

• the number, type and definition of performance categories;
• monitoring of categories, to ensure that as far as possible funds included in a category comply with its definitions;
• allocation of new funds into the appropriate category;
• the need to be able to identify groups of funds, which whilst meeting specific sector criteria, have additional similarities which investors or their advisers may legitimately wish to compare e.g. tracker funds, ethical funds;
• the way in which performance figures are calculated and displayed, including consideration of yields, charges and comparisons with indices, sector averages and competitor products;
• where funds are merged, converted or change category, to advise the data providers which record(s) should be maintained and the member concerned on how the process is to be observed;
• to advise on a uniform method of calculation of yield both for sector definition purposes and for publication/disclosure more generally;
• to co-operate with regulators on the drafting of rules, which affect areas within the remit of the Committee and to co-ordinate the industry’s response to such rules as appropriate.

In dealing with matters concerning an individual company, the Committee will endeavour to reach agreement directly with that company.  The Chairman of the PCRC will ultimately rule on any matters in dispute after consulting IMA.

If you need to submit details of funds including sector changes, fund mergers or fund domicile changes click here.