IMA opts against changing fixed income sector currency rules

The IMA has decided not to modify its sector rules governing fixed income funds' currency exposure, Investment Week understands.

Last November the IMA was considering tightening the sector definitions, amid concerns some fund managers in the £ Corporate Bond sector were using currency bets heavily within their portfolios. The IMA sector definition says funds are required to invest at least 80% of their assets in sterling denominated assets (or hedge 80% of the portfolio back into sterling) with a maximum of 20% of portfolios exposed to bonds denominated in overseas currencies. Investment Week understands the IMA was considering reducing the 20% maximum allocation to overseas currencies to reduce currency bets. ...