IMA may link Absolute Return and Managed sectors

The IMA's Absolute Return sector could be linked to the Managed sectors and broken down into risk profiles, according to director of markets.

Jane Lowe says the association is in the second phase of reviewing the sector, which has prompted criticism due to the diversity of asset classes within the individual funds and varying volatilities. The current sector definition says funds may be included if the aim is to produce a return of more than zero within 12-month rolling periods, but the IMA admits this definition lacks detail. In order to address this, Lowe says: "One option may be to link the Absolute Return sector with the Managed sectors, indicating whether it sits at the more or less conservative end of the spectrum. I...