Managed Funds Classification Hierarchy

As you will be aware there are currently no industry standards for defining asset classes, sectors, and sub-sectors.

Each Research House and Asset Consultant therefore has a proprietary classification system.

Lonsec operate a 3 tier classification system for funds with:

  • the highest level being ‘asset class;
  • the next level being ‘sector’; and
  • the final level being ‘sub-sector’.

The main implication for users will be when conducting fund searches in iRate. There may also be licensee portfolio construction guidelines for financial planners to consider based upon fund sector classifications (please consult your licensee for these).

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