Groups renew push for sub-sectors after IMA Absolute Return revamp

Fund groups have renewed their calls for sub-divisions within the Absolute Return peer group, after the IMA revealed its long-awaited review of the sector last week.

The trade body is to rename the sector ‘Targeted Absolute Return’ as part of a package of measures including a new sector definition and the potential to kick out underperforming funds (see box below). Speaking to Investment Week, IMA chief executive Daniel Godfrey revealed a subdivision of the sector is likely within the next one to two years, but appeared to rule out grouping funds by strategy despite pressure from leading providers.  “Subdivision is probably coming in the next one to two years. My instinct is to say we should divide by timeframe and objective,” he said. “I am no...