IMA overhauls sector definitions to become UCITS hedge fund friendly
September 21, 2010
The UK’s Investment Management Association is overhauling its sector definitions in response to the growing popularity of UCITS hedge funds.
The body that represents the authorised fund industry in the UK announced in August it is reviewing its official sectors because new legislation like UCITS III means that fund managers have gained wider investment powers.
The IMA is seeing more funds being launched that are characterised by their investment strategy – rather than the type of assets that they hold – and there has not been a major sector review since the introduction of the UCITS III legislation.
The sectors as they currently stand have been around for a long time according to Jane Lowe, director of markets for the IMA. The aim of the fund sectors is to take the entire 2,500 authorised fund universe in the UK and divide it into smaller groups of comparable funds, to give consumers and IFAs a starting point for searching for a fund.
Lowe says: “It took a...
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