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The IMA sectors classify similar funds into broad groups, allowing investors and financial advisers to compare funds on a like-for-like basis so that they can conduct further research into specific funds before making a final investment decision.
Following the launch the of the Global Emerging Markets Bond sector, the definition for the existing Global Bonds sector has also been amended to:
Funds which invest at least 80% of their assets in fixed interest securities. All funds which contain more than 80% fixed interest investments are to be classified under this heading regardless of the fact that they have more than 80% in a particular geographic sector, unless that sector is the UK or GEM, when the fund should be classified under the relevant UK (Sterling) or GEM heading. This sector has a wide range of funds which invest in bonds and currencies across geographic areas with differing characteristics.
Jonathan Lipkin, IMA Director of Public Policy, said: “The sector classification process responds to the evolution of the funds market. During a review of the IMA Fixed Income sectors, we recognised that there were enough funds within the Global Bonds sector to establish a new bond sector for funds that invest primarily in emerging markets. While emerging markets bond funds have been a feature of the fund market for some time, we have seen particular growth in recent years.”