The Investment Management Association (IMA) has today launched an Absolute Return sector.

The sector will allow both UK and overseas domiciled funds, which are UK registered and hold distributor status, to list in the sector. A review of the sector will be conducted 12 months from launch.

The IMA Absolute Return sector definition will be as follows:

Absolute Return sector:

Funds managed with the aim of delivering absolute (i.e. more than zero) returns in any market conditions.

Note:

• Funds are classified to and remain in this sector on the basis of self election by firms with qualitative oversight by the Performance Category Review Committee (PCRC).
• There is no asset based monitoring for this sector.  Consideration should be given by those listing in this sector to the obligation for Treating Customers Fairly (TCF).
• Typically funds in this sector would normally expect to deliver absolute (more than zero) returns in each year.
• Performance comparisons are inappropriate due to the diverse nature of the objectives of the funds populating this sector, including differing benchmarks, risk characteristics and timeframes for delivering performance.
• Absolute returns are made in the base currency of the fund.  Investors may be subject to currency losses should the base currency be different to their domiciled/invested currency.
• Funds listed in this sector do not guarantee returns.

-ENDS-

Notes to Editor:

The funds which will initially populate this sector are as follows:

About IMA
The IMA is the trade body for the UK's £3,100 billion asset management industry.  The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.  Its role is to represent the industry and promote high standards.

For further information, please contact:
Noreen Shah, Press Officer, IMA, 020 7831 0898

Out of hours:
Mona Patel, Head of Communications, IMA, 07834 089 332