IMA urged to add sectors after bringing in offshore funds
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Fund managers and advisers have called for the Investment Management Association to set up more sectors after announcing that offshore funds will start to be added to the existing sectors this month.
Last week, the IMA revealed it will add 71 funds, with 89 pending. Two more tranches will be added this year.
Schroders managing director of UK intermediary business Robin Stoakley says: “The majority of offshore funds are specialist products but I think advisers would like to compare like for like in a fair comparison. If that increases the number of sectors from 33 to 40, that is not such a big problem.”
’If you throw in a load of new funds, you can start plucking them out to create new sectors but you will still be left with this dustbin called specialist’
Of the 71 additions, 36 have come through the specialist sector, leading to calls for that sector to be broken up.
Skerritt Consultants head of investments Andrew Merricks says: “You can see the need for it in the specialist area but the fear is that any increase is overdone, as is the case with investment trusts.”
Allianz Global Investors managing director Nick Smith says: “There will be loads of funds that have had to hang around the specialist sector but now might be joined by other Luxemburg funds. If you throw in a load of new funds, you can start plucking them out to create new sectors but you will still be left with this dustbin called specialist.”
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