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© Association of Investment Companies 2019. This information is not to be distributed to, or used in connection with work on behalf of, an investment company which is not a member of the AIC, without the express permission of the AIC.
www.theaic.co.uk
Contact details
The Association of Investment Companies (AIC) represents closed-ended investment companies whose shares are traded on public markets. To discuss the issues raised in this paper please contact: David Michael, Website and Statistics Director, [email protected], 020 7282 5565
AIC Website and Statistics team,
[email protected], 020 7282 5599
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© Association of Investment Companies 2019. This information is not to be distributed to, or used in connection with work on behalf of, an investment company which is not a member of the AIC, without the express permission of the AIC.
www.theaic.co.uk
Contents 1 Principles & process 3
2 Understanding the sectors 7
3 AIC sector summary 9
4 Detailed sector names, descriptions & indicative characteristics 12
5 AIC Sector change request form 43
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© Association of Investment Companies 2019. This information is not to be distributed to, or used in connection with work on behalf of, an investment company which is not a member of the AIC, without the express permission of the AIC.
www.theaic.co.uk
Principles & process Overview
The AIC collaborates with key industry stakeholders to create and define the various categories (AIC sectors) in which investment companies sit. It is important that these sectors are allocated consistently and remain relevant as industry and global investment trends develop. Part of the process is to ensure that each individual company is allocated to the most appropriate AIC sector. This is carried out for all investment companies in the AIC’s universe. This classification system is used throughout the industry by asset managers, the media, brokers, platforms and data vendors. It provides meaningful and relevant peer groups for numerous forms of analysis, including performance rankings and data tables, peer group comparisons, awards and screening purposes. General principles The AIC uses the following guidelines when categorising investment companies: Aim & objective of the company The most important part of the classification process is a review of the company’s investment policy and objective. Asset allocation at any given time can be driven by short-term market conditions and can be subject to large fluctuations, whereas the company’s policy will rarely change. On occasions the investment policy and objective may not be definitive in terms of allocating the appropriate sector. The AIC would therefore also look at the asset class, sector and geography of current and historic underlying holdings to try and gauge what the most appropriate sector for the company is. Flexibility & stability The AIC allows for a degree of flexibility around the sector definitions. We aim to group companies in accordance with the spirit of their objective rather than to mechanistically apply a set of rules. Equally we strive for stability. Companies will not be moved in or out of sectors frequently and such moves will be done only with the agreement of the AIC Statistics Committee. This committee is made up of industry professionals representing asset managers, brokers, research analysts and data vendors. If a company has fallen someway short of its sector’s definition, we would engage with the company to discuss
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the reasons for this. We would try to ascertain if the company is likely to re-qualify going forward or whether a sector change would be appropriate. Comparability The AIC encourages ease of comparison between funds which meet similar investor needs, whether they are closed-ended or open-ended. As such, and where possible, the use of the same sector names as used by the Investment Association (which defines and allocates sectors in the open-ended universe) is beneficial. We also aim to use similar definitions for these equivalent sectors. Transparency and consultation Decisions on sector allocation and definition can have important commercial implications for the company concerned. The AIC will therefore always ensure the company is aware of any decisions that might be taken in these areas and involve them from the earliest opportunity so that they can provide any information that may be relevant to a final decision. The AIC aims to make all decisions with the support of the company concerned and in good time. In most cases, these decisions are not contentious and can be agreed rapidly. However, there may be occasions where agreement cannot immediately be reached. In such cases, the AIC would first escalate the matter to the Statistics Committee for further discussion. If it was still not possible to reach agreement, the matter would be referred to the AIC’s board for a final decision. The company would be kept informed at each stage of this process and allowed the opportunity to present any further information to support its case. No AIC sector changes will occur within the first seven business days of the month due to monthly industry reporting cycles. AIC sector allocation process There are four events that can lead to a company being allocated or reallocated an AIC sector classification: New listings / launches When a new company is launched, or there is a listing new to the AIC universe, the AIC reviews the investment objectives and policy published in the company’s prospectus and determines which of the existing sectors is most appropriate. There is usually sufficient detail within the document for the AIC to make a decision which is normally straightforward.
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www.theaic.co.uk
The AIC aims to have this process completed by the first day of trading on the exchange. However, if the AIC needs to refer the matter to its Statistics Committee for more detailed consideration (which can take up to 2 weeks) the AIC will provisionally allocate the company to the sector it deems most relevant.
Change of investment objective Each business day the regulatory news wires are monitored by the AIC for announcements of material changes to companies’ investment policies. The process is conducted for all companies in the AIC universe. Any material changes can lead to the AIC proposing a sector change. Initially the AIC would notify the affected company and (subject to their feedback) the Statistics Committee for consideration and approval. The AIC would aim to complete this process within 2 weeks.
Review request from company or its advisers On occasion, the investment company or its advisers may contact the AIC directly to request a change of sector. To facilitate this process, there is a dedicated form (at the back of this paper) which the AIC requires the company to complete. The AIC would
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then make a proposal to the Statistics Committee and seek its approval. The AIC would aim to complete this process within 2 weeks.
Biennial sector review Every two years the AIC carries out a review of all companies within the AIC’s universe to see if their sector allocations remain appropriate. Where the AIC believes a change of sector may be appropriate, it will refer the matter to the Statistics Committee for a view and, depending on the outcome, open a dialogue with the company. The full biennial review is scheduled to take up to 6 months.
New AIC sectors If a company does not naturally fit within any of the existing AIC sectors, the AIC will consider creating a new sector. This process would also involve identifying whether there are other companies that potentially fit more readily into the new category rather than their existing one. These matters would initially be referred to the Statistics Committee for its view, after which all the companies potentially affected by any proposed change would be contacted for their views. This process may take up to 3 months depending on the scope of the changes being proposed and the number of companies involved.
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© Association of Investment Companies 2019. This information is not to be distributed to, or used in connection with work on behalf of, an investment company which is not a member of the AIC, without the express permission of the AIC.
www.theaic.co.uk
Understanding the sectors
Introduction This document sets out three elements involved in the assignment and description of the AIC sectors:
• Sector name: this is the name of the sector that is used to help identify
investment companies which share common characteristics and are used
by investors, for example, to filter investment companies on financial
websites. The AIC aims to choose sector names that are accurate, helpful
and can be readily understood by retail investors.
• Sector description: this is a short description that provides an overview
of what companies in this sector aim to do. On the AIC website, this
description will appear when, for example, the cursor hovers over the
sector name. As with the sector name, the AIC aims to provide
descriptions that are accurate, helpful and can be readily understood by
retail investors.
• Indicative characteristics: these are a non-exhaustive list of factors that
the AIC would consider when deciding whether to allocate an investment
company to a specific sector. The more characteristics of a sector that an
individual investment company shares, the more likely that company is to
be allocated to that sector. However, the AIC does not consider these
characteristics mechanistically. In some cases, individual factors may
carry more weight than others. In other cases, a company may share a
significant number of characteristics with more than one sector. In all
cases, the AIC will work with the company concerned to identify the most
appropriate sector.
On occasion a company might meet sufficient characteristics to be classified in more than one sector. However, as each company can only appear in one sector for classification purposes we would prioritise the aspect that we believe would be of most interest to an investor. For example, we may prioritise the business focus of the company. So, a company which specialised in unquoted technology stocks would be housed in the technology sector rather than private equity. In other cases, such as debt, we may prioritise the type of instrument the company is invested in. For convenience, and to help when comparing investment companies with open-ended funds, we have indicated the closest Investment Association (IA) sector(s).
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However, as the AIC’s classification methodologies are not the same as those used by the IA, this is for general guidance only.
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www.theaic.co.uk
AIC sector summary
Sector type
New AIC sector Previous AIC sector IA equivalent
UK UK All Companies UK All Companies UK All Companies
UK UK Equity & Bond Income UK Equity & Bond Income
UK Equity & Bond Income
UK UK Equity Income UK Equity Income UK Equity Income
UK UK Smaller Companies UK Smaller Companies UK Smaller Companies
Overseas Asia Pacific Asia Pacific - Excluding Japan
Asia Pacific including Japan/Asia Pacific excluding Japan
Overseas Asia Pacific Asia Pacific - Including Japan
Asia Pacific including Japan/Asia Pacific excluding Japan
Overseas Asia Pacific Income New sector N/A
Overseas Asia Pacific Smaller Companies
New sector N/A
Overseas Country Specialist: Asia Pacific – ex Japan
Country Specialists: Asia Pacific
N/A
Overseas Country Specialist: Europe – ex UK
Country Specialists: Europe
N/A
Overseas Country Specialists: Latin America
Country Specialists: Latin America
N/A
Overseas Country Specialists: Rest of the World
Country Specialists: Other
N/A
Overseas Europe Europe Europe including UK/Europe excluding UK
Overseas European Emerging Markets
European Emerging Markets
N/A
Overseas European Smaller Companies
European Smaller Companies
European Smaller Companies
Overseas Global Global Global
Overseas Global Emerging Markets Global Emerging Markets
Global Emerging Markets
Overseas Global Equity Income Global Equity Income Global Equity Income
Overseas Global High Income Global High Income Global Equity Income/Global Bonds
Overseas Global Smaller Companies Global Smaller Companies
N/A
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Sector type
New AIC sector Previous AIC sector IA equivalent
Overseas Japan Japan Japan
Overseas Japanese Smaller Companies
Japanese Smaller Companies
Japanese Smaller Companies
Overseas Latin America Latin America N/A
Overseas North America North America North America
Overseas North American Smaller Companies
North American Smaller Companies
North American Smaller Companies
Flexible Flexible Investment Flexible Investment Flexible Investment
Specialist Biotechnology & Healthcare
Sector Specialist: Biotechnology & Healthcare
N/A
Specialist Commodities & Natural Resources
Sector Specialist: Commodities & Natural Resources
N/A
Specialist Debt – Direct Lending Sector Specialist: Debt N/A
Specialist Debt – Loans & Bonds Sector Specialist: Debt N/A
Specialist Debt – Structured Finance Sector Specialist: Debt N/A
Specialist Environmental Sector Specialist: Environmental
N/A
Specialist Financials Sector Specialist: Financials
N/A
Specialist Forestry & Timber Sector Specialist: Forestry & Timber
N/A
Specialist Hedge Funds Hedge Funds N/A
Specialist Infrastructure Sector Specialist: Infrastructure
N/A
Specialist Insurance & Reinsurance Strategies
Sector Specialist: Insurance & Reinsurance Strategies
N/A
Specialist Leasing Sector Specialist: Leasing
N/A
Specialist Liquidity Funds Sector Specialist: Liquidity Funds
N/A
Specialist Private Equity Private Equity N/A
Specialist Growth Capital New sector N/A
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www.theaic.co.uk
Sector type
New AIC sector Previous AIC sector IA equivalent
Specialist Renewable Energy Infrastructure
Sector Specialist: Infrastructure - Renewable Energy
N/A
Specialist Royalties New sector N/A
Specialist Technology & Media Sector Specialist: Small Media, Comms & IT Cos
Technology & Telecommunications
Specialist Technology & Media Sector Specialist: Tech Media & Telecomm
Technology & Telecommunications
Specialist Utilities Sector Specialist: Utilities
N/A
Property Property - Debt Sector Specialist: Debt N/A
Property Property - Europe Property Direct - Europe Property Other
Property Property - Rest of the world Property Direct - Asia Pacific
Property Other
Property Property - UK Commercial Property Direct - UK UK Direct Property
Property Property - UK Healthcare Property Specialist Property Other
Property Property - UK Residential Property Specialist Property Other
Property Property Securities Property Securities Property Other
VCT VCT AIM Quoted VCT AIM Quoted N/A
VCT VCT Generalist VCT Generalist N/A
VCT VCT Sector Specialist: Environmental
VCT Sector Specialist: Environmental
N/A
VCT VCT Sector Specialist: Healthcare & Biotechnology
VCT Sector Specialist: Healthcare & Biotechnology
N/A
VCT VCT Sector Specialist: Infrastructure
VCT Sector Specialist: Infrastructure
N/A
VCT VCT Sector Specialist: Media, Leisure & Events
VCT Sector Specialist: Media, Leisure & Events
N/A
VCT VCT Sector Specialist: Technology
VCT Sector Specialist: Technology
N/A
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www.theaic.co.uk
Detailed sector names, descriptions & indicative characteristics
(click to scroll to region or asset class)
1) UK
2) Overseas
3) Flexible
4) Specialist
5) Property
6) VCTs
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www.theaic.co.uk
UK sectors Sector name Sector description
UK All Companies
Invests in the shares of quoted UK companies for capital growth.
Indicative characteristics
• Over 80% invested in quoted UK shares
• Investment objective/policy to generate majority of returns from capital growth
• Majority of investments in medium to giant cap companies1
• Majority of expenses allocated to capital
• UK benchmark
IA equivalent
UK All Companies
Sector name Sector description
UK Equity & Bond Income
Invests in the shares of larger quoted UK companies, or high yielding securities, for a high income.
Indicative characteristics
• Over 80% invested in quoted UK shares, fixed income or other high-yielding
securities
• Less than 80% in fixed income securities
• Majority of equity investments in medium to giant cap companies1
• Investment objective/policy to generate majority of returns from income
• Majority of expenses allocated to revenue
• Portfolio or dividend yield above the average market yield
• UK benchmark
IA equivalent
UK Equity & Bond Income
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www.theaic.co.uk
Sector name Sector description
UK Equity Income
Invests in the shares of larger quoted UK companies for both capital growth and income.
Indicative characteristics
• Over 80% invested in quoted UK shares
• Investment objective/policy to generate returns from both capital growth and
income
• Majority of investments in medium to giant cap companies1
• No more than 75% of expenses allocated to either capital or revenue account
• Portfolio or dividend yield close to the average market yield
• UK benchmark
IA equivalent
UK Equity Income
Sector name Sector description
UK Smaller Companies
Invests in the shares of smaller quoted UK companies.
Indicative characteristics
• Over 80% invested in quoted UK smaller companies shares
• Investment objective/policy to invest in medium to smaller cap stocks
• Majority of investments in medium to micro-cap companies1
• UK smaller companies benchmark
IA equivalent
UK Smaller Companies
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Overseas sectors Sector name Sector description
Asia Pacific
Invests in the shares of larger quoted Asia Pacific companies.
Indicative characteristics
• Over 80% invested in quoted Asia Pacific shares
• Less than 80% in any single geographic area
• Investment objective/policy to invest in Asia Pacific shares
• Majority of investments in medium to giant cap companies1
• Asia Pacific benchmark
IA equivalent
Asia Pacific including Japan/Asia Pacific excluding Japan
Sector name Sector description
Asia Pacific Income
Invests in the shares of larger quoted Asia Pacific companies, or high yielding securities, for a high income.
Indicative characteristics
• Over 80% invested in Asia Pacific shares
• Less than 80% in any single geographic area
• Investment objective/policy to generate majority of returns from income
• Majority of equity investments in medium to giant cap companies1
• Majority of expenses allocated to revenue
• Portfolio or dividend yield above the average market yield
• Asia Pacific benchmark
IA equivalent
Not applicable
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Sector name Sector description
Asia Pacific Smaller Companies
Invests in the shares of smaller quoted Asia Pacific companies.
Indicative characteristics
• Over 80% invested in quoted Asia Pacific smaller companies shares
• Less than 80% in any single geographic area
• Investment objective/policy to invest in medium to smaller cap stocks
• Majority of investments in medium to micro-cap companies1
• Asia Pacific smaller companies benchmark
IA equivalent
Not applicable
Sector name Sector description
Country Specialist: Asia Pacific - ex Japan
Invests in the shares of quoted companies in up to two Asia Pacific countries, excluding Japan.
Indicative characteristics
• Over 80% invested in quoted shares in up to two Asia Pacific countries (not
including Japan)
• Investment objective/policy to invest in shares of companies in up to two Asian
Pacific countries
• Single Asia Pacific country or regional benchmark
IA equivalent
Not applicable
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Sector name Sector description
Country Specialist: Europe – ex UK
Invests in the shares of quoted companies in up to two European countries, excluding the UK.
Indicative characteristics
• Over 80% invested in quoted shares in up to two European countries (not
including the UK)
• Investment objective/policy to invest in shares of the companies in up to two
European countries (not including the UK)
• Single European country or regional benchmark
IA equivalent
Not applicable
Sector name Sector description
Country Specialist: Latin America
Invests in the shares of quoted companies in up to two Latin American countries.
Indicative characteristics
• Over 80% invested in quoted shares in up to two Latin American countries
• Investment objective/policy to invest in shares of companies in up to two Latin
American countries
• Single Latin American country or regional benchmark
IA equivalent
Not applicable
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Sector name Sector description
Country Specialist: Rest of the World
Invests in the shares of quoted companies in up to two countries.
Indicative characteristics
• Over 80% invested in quoted shares in up to two countries not already
covered in the other AIC geographical sectors
• Investment objective/policy to invest in shares in companies in up to two
countries
• Single country or regional benchmark
IA equivalent
Not applicable
Sector name Sector description
Europe
Invests in the shares of larger quoted European companies.
Indicative characteristics
• Over 80% invested in quoted European shares
• Less than 80% in any single geographic area
• Investment objective/policy to invest in European shares
• Majority of investments in medium to giant cap companies1
• European benchmark
IA equivalent
Europe including UK/Europe excluding UK
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Sector name Sector description
European Emerging Markets
Invests in the shares of quoted European emerging market companies.
Indicative characteristics
• Over 80% invested in quoted European emerging market shares
• Less than 80% in any single country
• Investment objective/policy to invest in European emerging market shares
• European Emerging benchmark
IA equivalent
Not applicable
Sector name Sector description
European Smaller Companies
Invests in the shares of smaller quoted European companies.
Indicative characteristics
• Over 80% invested in quoted European smaller companies shares
• Less than 80% in any single geographic area
• Investment objective/policy to invest in medium to smaller cap stocks
• Majority of investments in medium to micro-cap companies1
• European smaller companies benchmark
IA equivalent
European Smaller Companies
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Sector name Sector description
Global
Invests in the shares of larger quoted global companies for capital growth.
Indicative characteristics
• Over 80% invested in quoted global shares
• Less than 80% in any single geographic area
• Investment objective/policy to generate majority of returns from capital growth
• Majority of investments in medium to giant cap companies1
• Majority of expenses allocated to capital
• Global benchmark
IA equivalent
Global
Sector name Sector description
Global Emerging Markets
Invests in the shares of quoted global emerging market companies.
Indicative characteristics
• Over 80% invested in quoted global emerging market shares
• Less than 80% in any single geographic area
• Investment objective/policy to invest in global emerging market shares
• Global emerging benchmark
IA equivalent
Global Emerging Markets
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Sector name Sector description
Global Equity Income
Invests in the shares of larger quoted global companies for both capital growth and income.
Indicative characteristics
• Over 80% invested in quoted global shares
• Less than 80% in any single geographic area
• Investment objective/policy to generate returns from both capital growth and income
• Majority of investments in medium to giant cap companies1
• No more than 75% of expenses allocated to either capital or revenue account
• Portfolio or dividend yield close to the average market yield
• Global benchmark
IA equivalent
Global Equity Income
Sector name Sector description
Global High Income
Invests in the shares of larger quoted global companies, or high yielding securities, for a high income.
Indicative characteristics
• Over 80% invested in quoted global shares, fixed income or other high-yielding
securities
• Less than 80% in fixed income securities
• Less than 80% in any single geographic area
• Majority of equity investments in medium to giant cap companies1
• Investment objective/policy to generate majority of returns from income
• Majority of expenses allocated to revenue
• Portfolio or dividend yield above the average market yield
• Global benchmark
IA equivalent
Global Equity Income/Global Bonds
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Sector name Sector description
Global Smaller Companies
Invests in the shares of smaller quoted global companies.
Indicative characteristics
• Over 80% invested in quoted global smaller company shares
• Less than 80% in any single geographic area
• Investment objective/policy to invest in medium to smaller cap stocks
• Majority of investments in medium to micro-cap companies1
• Global smaller companies benchmark
IA equivalent
Not applicable
Sector name Sector description
Japan
Invests in the shares of larger quoted Japanese companies.
Indicative characteristics
• Over 80% invested in Japanese shares
• Investment objective/policy to invest in Japanese shares
• Majority of investments in medium to giant cap companies1
• Japanese benchmark
IA equivalent
Japan
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Sector name Sector description
Japanese Smaller Companies
Invests in the shares of smaller quoted Japanese companies.
Indicative characteristics
• Over 80% invested in quoted Japanese smaller companies shares
• Investment objective/policy to invest in medium to smaller cap stocks
• Majority of investments in medium to micro-cap companies1
• Japanese smaller companies benchmark
IA equivalent
Japanese Smaller Companies
Sector name Sector description
Latin America
Invests in the shares of quoted Latin American companies.
Indicative characteristics
• Over 80% invested in quoted Latin American shares
• Less than 80% in any single country
• Investment objective/policy to invest in Latin American shares
• Latin American benchmark
IA equivalent
Not applicable
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Sector name Sector description
North America
Invests in the shares of larger quoted North American companies.
Indicative characteristics
• Over 80% invested in quoted North American shares
• Investment objective/policy to invest in North American shares
• Majority of investments in medium to giant cap companies1
• North American benchmark
IA equivalent
North America
Sector name Sector description
North American Smaller Companies
Invests in the shares of smaller quoted North American companies.
Indicative characteristics
• Over 80% invested in quoted North American smaller companies shares
• Investment objective/policy to invest in medium to smaller cap stocks
• Majority of investments in medium to micro-cap companies1
• North American smaller companies benchmark
IA equivalent
North American Smaller Companies
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Flexible sector Sector name Sector description
Flexible Investment
Invests in a range of asset types.
Indicative characteristics
• Investment objective/policy which allows the company to invest in a range of
asset types, such as quoted and unquoted equity, bonds, other debt
instruments and property
• Company demonstrates a track record of investing in a range of different
asset types over time
IA equivalent
Flexible Investment
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Specialist sectors Sector name Sector description
Biotechnology & Healthcare
Invests in biotechnology and healthcare.
Indicative characteristics
• Over 80% invested in biotechnology and healthcare securities
• Less than 80% in debt
• Investment objective/policy to invest in biotechnology or healthcare securities
IA equivalent
Not applicable
Sector name Sector description
Commodities & Natural Resources
Invests in commodities and natural resources.
Indicative characteristics
• Over 80% invested in commodities and natural resources securities or assets
• Less than 80% in debt
• Investment objective/policy to invest in commodities and natural resources
securities or assets
IA equivalent
Not applicable
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Sector name Sector description
Debt – Direct Lending
Invests in direct lending.
Indicative characteristics
• Over 80% invested in debt instruments that have originated or been issued by
a directly lending platform or market, including-peer to-peer lending.
• Investment objective/policy to invest in debt instruments that have originated
or been issued by a directly lending platform or market, including-peer to-peer
lending.
IA equivalent
Not applicable
Sector name Sector description
Debt – Loans & Bonds
Invests in general loans and bonds.
Indicative characteristics
• Over 80% invested in general debt instruments such as secured loans and
bonds and syndicated lending
• Investment objective/policy to invest in general debt instruments such as
secured loans and bonds and syndicated lending
IA equivalent
Not applicable
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Sector name Sector description
Debt – Structured Finance
Invests in structured finance.
Indicative characteristics
• Over 80% invested in debt instruments specialising in structured finance
including asset backed securities, CLOs/CDOs and securitised products.
• Investment objective/policy to invest in debt instruments specialising in
structured finance including asset backed securities, CLOs/CDOs and
securitised products
IA equivalent
Not applicable
Sector name Sector description
Environmental
Invests in the environmental sector.
Indicative characteristics
• Over 80% invested in environmental securities or assets
• Less than 80% in debt
• Investment objective/policy to invest in environmental securities or assets
IA equivalent
Not applicable
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Sector name Sector description
Financials
Invests in financial service businesses.
Indicative characteristics
• Over 80% invested in finance or financial service securities
• Less than 80% in debt
• Investment objective/policy to invest in finance or financial services securities
IA equivalent
Not applicable
Sector name Sector description
Forestry & Timber
Invests in forestry and timber.
Indicative characteristics
• Over 80% invested in forestry and timber securities or assets
• Less than 80% in debt
• Investment objective/policy to invest in forestry and timber securities or assets
IA equivalent
Not applicable
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Sector name Sector description
Hedge Funds
Invests in hedge funds.
Indicative characteristics
• Over 80% invested in hedge funds, either directly or via master funds or a
range of hedging strategies
• Investment objective/policy to invest in hedge funds, either directly or via
master funds or a range of hedging strategies
IA equivalent
Not applicable
Sector name Sector description
Infrastructure
Invests in infrastructure assets. Investments can be made via debt, equity or a combination of both.
Indicative characteristics
• Over 80% invested in infrastructure securities or assets.
• Investment objective/policy to invest in infrastructure securities or assets
IA equivalent
Not applicable
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Sector name Sector description
Insurance & Reinsurance
strategies Invests in insurance and reinsurance.
Indicative characteristics
• Over 80% invested in insurance or reinsurance-based securities
• Less than 80% in debt
• Investment objective/policy to invest in insurance or reinsurance-based
securities
IA equivalent
Not applicable
Sector name Sector description
Leasing Invests in assets to be leased.
Indicative characteristics
• Over 80% invested in assets to be leased
• Less than 80% in debt
• Investment objective/policy to invest in assets to be leased
IA equivalent
Not applicable
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Sector name Sector description
Liquidity Funds
Invests in liquidity funds.
Indicative characteristics
• Over 80% invested in Liquidity Funds
• Investment objective/policy to invest in liquidity funds
IA equivalent
Not applicable
Sector name Sector description
Private Equity
Invests in unquoted shares.
Indicative characteristics
• Over 80% invested in private equity/unquoted shares
• Investment objective/policy to invest in private equity or unquoted shares
IA equivalent
Not applicable
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Sector name Sector description
Growth Capital
Invests in unquoted shares. Generally takes non-controlling stakes in early to maturing companies.
Indicative characteristics
• Over 80% invested in private equity/unquoted shares with the opportunity to
hold post IPO
• Investment objective/policy to invest in private equity or unquoted shares
• Takes non-controlling stakes
• Looks to provide expansion capital for the investee company
• Rarely employs leverage on investee company to finance the purchase price
Sector name Sector description
Renewable Energy Infrastructure
Invests in renewable energy infrastructure.
Indicative characteristics
• Over 80% invested in renewable energy infrastructure securities and assets
• Less than 80% in debt
• Investment objective/policy to invest in renewable energy infrastructure
securities or assets
IA equivalent
Not applicable
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Sector name Sector description
Royalties
Invests in royalties.
Indicative characteristics
• Over 80% invested in royalties
• Investment objective/policy to invest in royalties
IA equivalent
Not applicable
Sector name Sector description
Technology & Media
Invests in technology and media.
Indicative characteristics
• Over 80% invested in technology and media securities
• Less than 80% in debt
• Investment objective/policy to invest in technology and media securities
IA equivalent
Technology & Telecommunications
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Sector name Sector description
Utilities
Invests in utilities.
Indicative characteristics
• Over 80% invested in utility securities or assets
• Less than 80% in debt
• Investment objective/policy to invest in utilities securities or assets
IA equivalent
Not applicable
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Property sectors Sector name Sector description
Property - Debt
Invests in property debt.
Indicative characteristics
• Over 80% invested in debt instruments specialising in property
• Investment objective/policy to invest in debt instruments specialising in
property
IA equivalent
Not applicable
Sector name Sector description
Property – Europe
Invests in European property.
Indicative characteristics
• Over 80% invested in European property
• Less than 80% in debt
• Investment objective/policy to invest in European property
IA equivalent
Property Other
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Sector name Sector description
Property – Rest of World
Invests in property in the rest of the world.
Indicative characteristics
• Over 80% invested in property not covered by other AIC regional property
sectors
• Less than 80% in debt
• Investment objective/policy to invest in global property (not covered by other
AIC regional property sectors)
IA equivalent
Property Other
Sector name Sector description
Property – UK Commercial
Invests in UK commercial property.
Indicative characteristics
• Over 80% invested in UK commercial property
• Less than 80% in debt
• Investment objective/policy to invest in UK commercial property
IA equivalent
UK Direct Property
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Sector name Sector description
Property – UK Healthcare
Invests in UK healthcare property.
Indicative characteristics
• Over 80% invested in UK healthcare property
• Less than 80% in debt
• Investment objective/policy to invest in UK healthcare property
IA equivalent
Property Other
Sector name Sector description
Property – UK Residential
Invests in UK residential property.
Indicative characteristics
• Over 80% invested in UK residential property
• Less than 80% in debt
• Investment objective/policy to invest in UK residential property
IA equivalent
Property Other
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Sector name Sector description
Property Securities
Invests in property shares.
Indicative characteristics
• Over 80% invested in the shares of property companies
• Less than 80% in debt
• Investment objective/policy to invest in the shares of property companies
IA equivalent
Property Other
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VCTs
Sector name Sector description
VCT AIM Quoted
Invests in AIM stocks.
Indicative characteristics
• VCT status
• Over 80% invested in a range of qualifying investments listed, or about to be listed, on AIM or any other exchanges where the securities are treated as unquoted
• Investment objective/policy to invest in VCT qualifying investments listed, or about to be listed, on AIM or any other exchanges where the securities are treated as unquoted
IA equivalent
Not applicable
Sector name Sector description
VCT Generalist
Invests in a range of different sectors.
Indicative characteristics
• VCT status
• Invests in a range of qualifying investments in different sectors
• Investment objective/policy to invest in VCT qualifying investments in a range
of sectors
IA equivalent
Not applicable
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Sector name Sector description
VCT Sector Specialist: Environmental
Invests in environmental companies.
Indicative characteristics
• VCT status
• Over 80% invested in qualifying investments of environmental companies
• Investment objective/policy to invest in VCT qualifying investments in
environmental companies
IA equivalent
Not applicable
Sector name Sector description
VCT Sector Specialist: Healthcare & Biotechnology
Invests in healthcare and biotechnology companies.
Indicative characteristics
• VCT status
• Over 80% invested in qualifying investments of healthcare and biotechnology companies
• Investment objective/policy to invest in VCT qualifying investments in a
healthcare and biotechnology companies
IA equivalent
Not applicable
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Sector name Sector description
VCT Sector Specialist: Infrastructure
Invests in infrastructure companies.
Indicative characteristics
• VCT status
• Over 80% invested in qualifying investments of infrastructure companies
• Investment objective/policy to invest in VCT qualifying investments in
infrastructure companies
IA equivalent
Not applicable
Sector name Sector description
VCT Sector Specialist: Media, Leisure & Events
Invests in media, leisure and events companies.
Indicative characteristics
• VCT status
• Over 80% invested in qualifying investments of media, leisure or event companies
• Investment objective/policy to invest in VCT qualifying investments in media,
leisure or event companies
IA equivalent
Not applicable
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Sector name Sector description
VCT Sector Specialist: Technology
Invests in technology companies.
Indicative characteristics
• VCT status
• Over 80% invested in qualifying investments of technology companies
• Investment objective/policy to invest in VCT qualifying investments in
technology companies
IA equivalent
Not applicable
Explanatory Notes
1. For the purposes of assessing the size of investee companies the AIC uses the
following percentages of market capitalization, within each market.
Investment size Market capitalization band
Giant Top 40%
Large Next 30%
Mid-cap Next 20%
Small-cap Next 7%
Micro-cap Lowest 3%
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AIC sector change request form
If you believe the company you represent is in an inappropriate sector you can contact the AIC using the attached form to request a change of sector. Please provide as much detail and supporting evidence as possible. Refer to the page 5 of this document for further details on the process.
Sector Change
Request Form.docx
Company name:
Current AIC sector:
Proposed AIC sector:
Company objective/investment policy:
Do you believe this company has been in line with the proposed AIC sector definition in the last three years? (delete as applicable)
Yes/No
If yes, please provide details here:
If no, please provide details here: (including any proposed dates on which compliance is expected)
Additional information:
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Form completed by:
Name:
Company:
Date:
Supporting documents attached? (delete as applicable)
Yes/No
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The Association of Investment Companies www.theaic.co.uk EU Transparency Register Number: 83957346078-57