IMA REVIEWS ABSOLUTE RETURN SECTOR

Following the launch of the IMA Absolute Return sector in April 2008, the Investment Management Association's (IMA) Performance Category Review Committee (PCRC) has reviewed the sector.

The review concluded that the Absolute Return sector is healthy and growing and that the definition remains appropriate.  For clarity, a timeframe for expecting to deliver an absolute return has been added to the definition.

The revised definition is as follows:

Absolute Return sector definition

Funds managed with the aim of delivering absolute (i.e. more than zero) returns in any market conditions. Typically funds in this sector would normally expect to deliver absolute (more than zero) returns on a 12 months basis.

Note:

1. 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).
2. 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).
3. 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.
4. 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.
5. Funds listed in this sector do not guarantee returns.

The sector will be reviewed in another 12 months.

-ENDS-

Notes to Editors:

1. The previous sector definition was 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.

2. There are currently 37 funds in the IMA Absolute Return sector of which 12 are offshore. In April 2008, there were 17 funds in the sector of which 12 were offshore.

3. The PCRC is the IMA Performance Category Review Committee whose remit is to oversee the integrity of the IMA sectors.  Committee members are drawn from IMA member firms, data vendors and the sector monitoring company, Lipper, as well as IMA staff.

For further information, please contact:
Noreen Shah, Press Officer, IMA, 0207 831 0898
Mona Patel, Head of Communications, IMA, 07834 089332