IMA proposes end of 'Cautious' and 'Active' tags in sector review

The Investment Management Association (IMA) has proposed scrapping the Active, Balanced and Cautious tags and merging the Absolute Return sector into a new managed sector, in its review of the Managed peer groups.

Investment Week understands the IMA is considering replacing the terms Active, Balanced and Cautious with an alphabetical system. Under one of the options put to members, the new sectors would be labelled Managed A, B and C. Crucially for providers, they would be able to keep existing fund names which include the terms 'active', 'balanced', or 'cautious'. A fourth sector, Managed D, would contain some funds currently residing in the cautious sector, as well as funds from the existing Absolute Return sector which aim to constrain their volatility. Absolute return funds which do not ...