IMA considers risk-targeted sectors as number of unclassified funds soars

The Investment Management Association (IMA) is understood to be looking at a range of sectors for the increasing number of risk-targeted funds which are choosing to remain unclassified.

Sources told Investment Week a group of fund providers have spent three years lobbying for new sectors for the increasing number of risk-targeted funds. Multiple risk-targeted portfolios have been launched in recent years in response to investor demand, and many have seen strong inflows. For example, Standard Life's MyFolio range, run by Bambos Hambi, has attracted £4.8bn over the past four years. However, since risk-targeted funds have no comparable mandates in the existing IMA sectors, their rise has coincided with a huge jump in the number of unclassified funds. In the past year...