In terms of comparing one fund with another, traditional industry sector classifications (such as those used by the IMA or the ABI) although of some use are, in our opinion, too broadly drawn to allow meaningful comparisons. To address this we have developed a proprietary approach to categorising funds. We subdivide the investment universe into much tighter groupings, which we term the OBSR Categories™. We have different Categories for Equity, Fixed Interest and Multi-Manager fund types.
We also highlight any particular characteristics, such as market capitalisation and return bias that may apply to Equity and Multi-Manager funds respectively. We also identify the asset class focus of Fixed Interest funds, for example gilts, investment grade corporate bonds, high yield bonds or a strategic combination of these.
This enables us to compare funds of similar types and underlying characteristics. Our clients can use these categorisations to identify the most appropriate type and style of fund to meet their client’s needs and then to make more useful and meaningful like-for-like comparisons between individual funds within its own Category.