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In the absence of regulatory guidance and in the interests of trying to limit variations in approach, the IMA has proposed that asset managers extend the track record for existing retail share classes to the new RDR share classes. This means retaining the impact of higher fees of existing classes on performance data.
The guidance will encourage a consistent approach amongst asset managers in the way they report past performance for RDR share classes to investors.
Jane Lowe, IMA’s Director of Markets, said: “Current ESMA rules leave it to individual asset managers to choose how they present past performance information for the new RDR share classes. However it’s important that the industry adopts a consistent methodology for presenting the data.
The guidance also retains the data vendors’ existing calculation methodology for IMA sector averages of using the highest retail fee share class as the primary share class. The IMA will review this methodology in 2013.