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IMA to add property sector

The Investment Management Association and the Performance Category Review Committee is to launch a new property sector, covering both direct and securities funds.

The sector will come into force on January 1, 2009 with monitoring taking place from the end of Q1 in order to allow the set up of reporting systems and technical points.

The IMA is to highlight certain sub-groups of funds, these are property fund of funds, direct property funds, property security funds and hybrid property funds. Funds may cover any geographical regions.

To qualify for the sector funds must invest predominantly in property, meaning they should either invest 60 per cent of their assets directly in property; or invest at least 80 per cent of their assets in property securities; or when when their direct property holdings fall below the 60 per cent threshold for a period of more than 6 months, invest sufficient of the balance of their assets in property securities to ensure that at least 80 per cent of the fund is invested in property, whereupon it becomes a hybrid fund.


Toxic fears holding back investment in banks

The Investment Management Association has told MPs that its members are not prepared to invest in bank reconstructions as they believe institutions have yet to fully write down their exposures to toxic assets.


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