What are Non-Classified sectors and countries?

aroominyork

Can someone please explain what Non-Classified means in a list of sectors and countries held within a fund? For example, HL's page for Man GLG Continental European Growth shows 6.70% as Non-Classified under both Sectors and Countries.

bowlhead99

From time to time funds will hold something that isn't automatically categorised as, for example, it's an investment in a diverse investment company or specialist fund (sometimes categorised as 'financial services', sometimes as 'other') or is a collection of wacky financial instruments that don't have a standard sedol / isin number to plug into an identification tool.

In this case your discrepancy at the end of March was the fund's 4th biggest holding which can be seen in its top ten:

"RYANAIR HOLDINGS PLC (ID*) (CFD CS IRE)"

You might recognise the name as being a travel business, whose primary listing is on the Irish stock exchange. However it looks like their position is unclassified due to being structured as a set of contracts for difference rather than directly owning the shares via London or Dublin exchange.

Actually, they might also hold the shares directly but have aggregated their CFDs, derivatives or swaps with their directly held shares (to give the total position for the purposes of ranking the exposure in their top 10 and top 50 etc), but then when the direct shares are grouped with the CFDs the label for the combined holding is just the first or last name on the alphabetic list of names of the different instruments, which happens to be CFD rather than direct shares, and doesn't have an automatic match in the classification database.

That won't be the answer in every case that you see 'other'. But the auto classification systems do tend to get confused when something is anything other than a plain vanilla holding bought on its primary exchange. I have some ADRs for example which don't get classified by the system my broker uses.