IMA INTRODUCES UK ZEROS SECTOR

IMA has today introduced a new UK Zeros sector consisting of funds investing in a high proportion of zero dividend preference shares or equivalent instruments which were previously categorised in the UK Other Bond sector. 

Following consultation with its members, IMA identified the need to separate out funds investing in zeros from the remaining funds in the UK Other Bond sector. The change will permit the UK Other Bond sector to consist of funds principally targeting immediate income, whilst the UK Zeros sector will mainly target capital growth and total return.

The new sector will consist of nine funds and will be implemented with immediate effect.

The funds to be classified in the UK Zeros sector are:

Aberdeen Progressive Growth          Framlington Absolute Growth

Gartmore Preference                       Investec Capital Accumulator

ISIS Progressive Growth                  Jupiter Preference

New Star Zero Portfolio                    New Star Zero Preference

Premier Zero Preference

 Gordon Midgley, Director of Research at the IMA commented:

 “The introduction of the UK Zeros sector will permit a more accurate comparison of funds both for the industry and the retail investor, particularly when comparing fund performance and objective. We will of course monitor the sector in line with IMA’s existing sector monitoring policy to ensure that the number of funds continue to justify a separate sector and to oversee the correct placement of funds within IMA’s sector classification system.”

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For further information, please contact:

Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:

Mona Patel, Head of Communications, IMA, 07834 089332

Notes to Editors:

New sector definitions for both the UK Zeros and UK Other Bonds sectors are below.

UK Zeros

Funds investing at least 80% of their assets in Sterling denominated (or hedged back to Sterling), and at least 80% of their assets in zero dividend preference shares or equivalent instruments (i.e. not income producing). This excludes preference shares which produce an income.

UK Other Bond

Funds investing at least 80% of their assets in Sterling denominated (or hedged back to Sterling), and at least 20% of their assets in below BBB minus bonds as measured by Standard and Poor’s or equivalent, convertibles and income producing preference shares.

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Tel: +44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975 

www.investmentuk.org 

Investment Management Association is a company limited by guarantee registered in England and Wales Registered number 4343737.  Registered office as above.