IMA proposes changes to Absolute Return sector

The IMA has put forward three proposals to member groups on how to divide up the Absolute Return sector.

After a prolonged review of the sector, which has been delayed several times, the IMA is consulting on whether it should be divided up according to cash benchmark, strategy, or thirdly, whether to leave the funds grouped together but allow investors to filter for specific criteria on the IMA's website. The IMA said there are about 40 funds which use a cash target, a large enough number to create a sector. The most commonly used benchmark is the 3-month LIBOR but other benchmarks are used and there are around six cash plus funds, which is not enough to create an additional sector so they ...