Low demand prompts IMA to shelve new sector
Share
The IMA has delayed the launch of a sector, after too few funds were willing to enter it.
The IMA Mixed Investment 0-35% sector was among the relaunched managed sectors, but the initiative has stalled as little interest was shown in the sector.
Three other sectors, the IMA Mixed Investment 20-60% Shares, IMA Mixed Investment 40-85% Shares and IMA Flexible Investment sectors, were launched as planned. (article continues below)
The remaining sector will be launched once 10 funds in total have joined, usually the minimum for a sector. A total of 435 funds have joined the new sectors so far.
The new sector, announced in November, had already prompted surprise in the industry over whether their would be enough demand from asset managers for the sector.
The new managed sectors are based on corresponding sectors established by the Association of British Insurers for pension funds.
Replacing the previous Active, Balanced and Cautious sectors, the sectors are designed to be more descriptive and act as a “useful signpost” for investors making decisions.
The IMA claimed that although the definitions may have changed, many of the limits on asset class exposure were “broadly consistent” with previous limits.
The latest review of the managed sectors, published last year, was a contentious issue with a previous plan to re-label the sectors having met with resistance, while other adjectives used to re-label the sectors were not felt appropriate.
It was the first time since 1998 that a full sector review had taken place.
To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here and Follow @fundweb
