IMA to rename and redefine Absolute Return sector

The Investment Management Association (IMA) will rename the Absolute Return sector as the Targeted Absolute Return sector as it completes a long-awaited review of the space, Investment Week can reveal.

Having delayed its final response to the May 2011 review several times,  the new name is now set to come into force at the start of June. The changes will also see the industry body overhaul its requirement for funds' performance to be assessed over rolling 12-month periods. Under the new definitions, all funds in the sector must, at a minimum, target positive returns in any market conditions. All funds in the sector must also state a timeframe over which they are aiming to meet their specified target. The target may not be longer than three years. The trade body will also see...