The Investment Association (IA) has today announced updates to the Property and Healthcare sectors. The aim is to reflect evolving approaches to investing. As part of the reviews, the definitions of these sectors were examined by the IA to determine whether they align with current market practice and to best help savers and their advisers to navigate the large universe of funds in the UK.
The property sectors review looked at recategorising the UK Direct Property and Property Other sectors due to shifting market dynamics. Following a public consultation, it was agreed that two new sectors will be created: a Direct and Hybrid Property sector, and a Listed Property sector. This change will give investors a clearer way to both find funds with a meaningful exposure to physical property and those investing in listed property.
A second review considered whether the IA should allow biotechnology funds to be classified alongside funds in the Healthcare sector. Following a consultation, it was agreed that biotechnology funds should be eligible for inclusion in the Healthcare sector rather than remaining in the Specialist sector or outside the sectors scheme, where they are less visible to investors. To reflect the change, the sector will be named the Healthcare and Biotechnology sector, giving investors improved visibility over an important part of the healthcare landscape, highlighted by the Life Sciences place in the UK government’s industrial strategy.
Changes to all Property and Healthcare sectors will come into force on 1 June 2026.
Miranda Seath, Director of Market Insight & Fund Sectors at the Investment Association, said: “We continually assess our fund sectors to ensure that they are aligned with evolving approaches to investing. It is important to acknowledge that market practice has changed since the IA’s Property and Healthcare sectors were originally created. The new categorisations and inclusions better reflect the way that fund managers define funds in these sectors, assisting investors and their advisers in finding like-for-like funds when taking investment decisions.”