IMA urged to adopt European AR rules

LGIM's Ellis believes adopting European rules will help rectify any ambiguity regarding sector.

Legal & General Investment Management’s Simon Ellis has called on the IMA to adopt European guidelines when it overhauls the much-maligned Absolute Return sector. Ellis, the head of the group’s unit trust business, said the current IMA sector definition does not set expectations in terms of constituent funds’ underlying investments. He added the return expectations are also ‘implicit’ as opposed to being set in stone. He said the IMA should adopt the European Fund and Asset Management Association (EFAMA)’s definitions to better manage client expectations, removing the five accompanyi...